A Study On Optimizing The Internal Audit Of Chinese Rural Credit Cooperative

With the rapid development of economy, agricultural economy and realizing the great leapforward growth, in the urban financial market gradually saturated, the rural financial market is becomingthe focus of attention. As early as1951, state support for the healthy development of rural financial marketis set up according to the main business of the Agricultural Bank of Chinese agricultural market. With thereform of social financial market and national strategic adjustment of agricultural finance, rural creditcooperatives emerge as the times require, as located in the service "three rural", urban and rural economyand with the development of the non bank financial institutions on China’s economy in twentieth Centuryninety years, rural credit cooperatives and Agricultural Bank of China formally separated from, graduallydeveloped into today’s new rural credit cooperatives financial organization.At present, the rural credit cooperatives operating system although many times to deepen thereform, but there are still many problems in the system and business processes, such as business processwas not standardized, employee risk awareness is weak and poor ability to resist risks, especially theinternal audit management system in the service content and process supervision is not perfect etc.. Ruralcredit cooperatives internal audit system failure led to its operating illegal cases occur frequently, theinternal audit management system is not perfect, including the audit process does not regulate auditors riskawareness is low, which will directly affect the safe operation of rural credit cooperatives.Firstly, the main content of this paper on internal audit are introduced, should follow the premiseof independence, authority, objectivity, impartiality, efficiency of the principle of work, through the organiccombination of transaction based auditing, the system based auditing and the risk based audit method,combination of internal audit of the "nine processes" with the "seven steps" on rural credit cooperativesdevelop deep internal audit, internal audit risk identification, early play control risk, risk mitigation effect.Secondly, this paper lists the NC Rural Credit Cooperatives director Lee embezzle public security specialaccounting transaction code misappropriate huge deposit BA Rural Credit Cooperatives, rural creditcooperatives Zhang embezzlement escape auditors monitor steal cash and MN Rural Credit CooperativesWang virtual real take and auditors Zhao collusion steal cash case. Based on the analysis of three cases found that rural credit cooperatives internal audit process such as the existence of the internal auditdepartment lacks the problem the way to independence and authority of internal audit, audit personnelquality is low, backward, performance evaluation mechanism is not perfect etc.. Once again, the reason ofthe problems in-depth analysis, consider all factors put forward relevant countermeasures, includinginternal audit institutions and personnel to improve the independence, to carry out a full range of audit,audit data acquisition range expansion, strict audit personnel access standards and build effective evaluationmechanism. Finally, combined with the measures proposed in this paper based on the internal audit processspecific improvement methods and internal audit staff performance appraisal standards. Specific content forthe internal audit process in the preparation stage, implementation stage, the report stage and treatmentstage put forward the concrete steps of the optimization scheme, using the Balanced Scorecard to measurethe perfect rural credit cooperatives existing relatively simple appraisal mechanism as the foundation fromthe financial, customer, internal operation, learning and growth four aspects to.The innovation of this article is based on detailed investigation on the current actual situation ofrural credit cooperatives internal audit, the audit and supervision of other advanced industry by using thetheory of rural credit cooperatives internal audit work, to construct the performance evaluation standardmore efficient internal audit process and internal audit staff for the agricultural letter society quantity body,to a certain extent to solve the rural credit cooperatives internal audit problems, improve the rural creditcooperatives internal risk identification and control ability, and the internal audit personnel assessmentsystem more systematic, measurable, and internal audit system for units of other financial institutions andenterprises, the cause of the establishment and optimization to provide certain reference significance.