Study Of The Internal Audit Issue On Agricultural Bank Of China

The third plenary session of the eighteenth established the major policies of China’s financial reform, full liberalisation of the financial elements is the general direction of reform. Financial disintermediation, the interest rate market in the ascendant, it brings opportunities for the further development of commercial banks, it also brings serious challenges. In order to adapt to the new situation, improve the core competitiveness of commercial Banks, commercial Banks need to perfect the corporate governance to improve operational efficiency and the ability to control risk. Internal audit as a commercial bank supervision, evaluation and service mechanisms, it plays an irreplaceable role in improving the management benefit and perfecting the internal control and corporate governance for commercial Banks. In improving the corporate governance of commercial Banks and risk prevention ability, internal audit will play an increasingly important role. Since agricultural bank set up internal audit institutions in1985, the agricultural bank has four rounds of reform of the internal audit institutions and now primarily sets up affiliated with the relatively independent internal audit institutions leading system of the board of directors. But in recent years, the agricultural bank deputy governor of the headquarters of Yang Kun case, xuzhou agricultural bank paper case, bank vault theft of handan city as well as a number of major cases happened that agricultural bank’s internal audit still exists many problems.Based on the comprehensive utilization of the principal-agent theory, a variety of perspective of corporate governance theory, the insider control theory, and the theory of the commercial bank internal auditing theory knowledge, in based on the analysis of the present situation of the agricultural bank of internal audit, pointed out that the agricultural bank of internal audit is not effective for top managers lack of supervision, audit supervision of grassroots organization, audit quality control system is not perfect, not adapt to the new situation of financial product innovation, the concept of risk-oriented audit has not really implemented, results have not been established, such problems as insufficient human resources sharing platform, and probes into the problems related to genetic analysis, finally put forward some Suggestions for improving agricultural bank internal audit.Five big state-owned commercial Banks in the process of shareholding system reform of the internal audit system reform were carried out, its internal audit and internal audit level basically is the same.In this paper, by studying the problems existing in the agricultural bank of internal audit, put forward some measures to improve the bank’s internal audit, to improve the mechanism of the agricultural bank of internal audit, improve the level of agricultural bank of internal audit has practical guiding significance, also for other state-owned commercial Banks to improve the mechanism of the internal audit, improve the level of internal audit has a reference value.