| In recent years, domestic factoring developed rapidly and has become an importantfinancial product of commercial bank. The borrowers normally don’t have to provideadditional guarantee while applying this product, therefore domestic factoring plays apositive role in both supporting the development of Small and Medium Enterprises, andpromoting economic structural adjustment. With the development of domestic factoring,the implementation of internal audit to this product is very imperative.Thesis first introduces the basic concept of domestic factoring business, describesthe handling processes of this business, and the basic theory of internal audit. Secondly,the author conducts a risk analysis based on the present management and audit situation ofAB Hebei Branch. Subsequently, the author conducts a research on the method of internalaudit of this product. Thesis mainly related the development of audit program, off-siteaudit methods and on-site audit methods, in which exhaustively elaborates thedevelopment of off-site audit model and the methods of how to analyze audit doubts.Finally, the author introduces several audit cases combined with the results of the auditpractice.The main contribution of this paper is to give a systematic, targeted and operationalmethod of how to conduct an audit of domestic factoring business. Combined with theaudit organization system of AB Bank, the author introduces the basic audit process,several main contents of the audit scheme, more than thirty off-site audit models, auditprocedures and methods while auditors conduct on-site audit. This can be used as areference for audit institutions and auditors of how to conduct domestic factoring businessauditing, and the managers of this business could learn some risk control methods from itas well. |
