Research On The Value-added Internal Audit Of Commercial Banks In China

In recent years, the world economic, social, political and cultural environment has changed very greatly and the financial industry has changed more rapidly also. This perplexing environment presents a great challenge to the management of commercial banks. To realize the value maximization is the ultimate goal of the enterprise, value orientation is the eternal criterion of any enterprise, commercial banks are no exception. The source for enterprise development is that the enterprise should create economic value for the owner and all stakeholders. The internal audit department is indispensable in the process of business development. Although the business form, the scale of operation, the operating environment are different, the role it plays in enterprise internal control, risk management and corporate governance has much in common. The internal audit function has involved from error checking to value creation activity for enterprise, namely a new stage of internal audit--- value-added internal audit. In order to add commercial banks’ own value, they should pay attention to the development of value-added internal audit, so that they own position in the fierce competition in the financial field. Therefore, research on value-added internal audit related to commercial banks is more deeply. The commercial bank has become a noticeable battlefield of value-added internal audit. On the commercial banks, how to make use of value-added internal audit to add value to the organization, how to make internal audit department play the role efficiently to the commercial banks through the system guarantee, institutional setup, personnel security, evaluation mechanism become a hot topic of the theory and practice circles gradually.The normative research and case study are combined in this article. From the value-added internal audit theory point of view, the existing problems of China commercial banks in the development of value-added internal audit are illustrated, for instance, the lack of value-added concept and knowledge of risk, poor institutional independence and authority and low audit quality, etc. The causes of these problems are analyzed through the specific environment of China commercial banks. On this basis, the advanced experience can be extracted from commercial banks’ value- added internal audit application process. As a guide, it puts forward a sound strategy for the development of China commercial banks’ value-added internal audit. It can be seen from the article that from the status quo of China commercial banks’ value-added internal audit, the concept of value-added optimization strategy, organizational system optimization strategy, risk-oriented strategy, quality control policy and professional competency protection strategy are implemented by internal audit organization, which can promote the appreciation of commercial bank by using internal audit.The innovation of this article is when the normative research is utilized, the case study is implemented. Detailed analysis of specific issues of commercial banks are given, thus, the solutions of problems are more targeted. Due to the limited research condition, it is difficult to collect data and the scope of study has some limitations. Therefore, the conclusion is just in guidance level.