H Commercial Bank’s Risk Oriented Internal Audit Study

Commercial bank is a for-profit, to raise funds in a variety of financial liabilities, a variety of financial assets for business object with credit creation functions of financial institutions. It occupies a very important position in the entire financial system of a country in the development of the financial sector and the whole economy and society plays an important role. With the deepening of China’s financial reform, banks are facing increasingly complex business environment, internal and external risks faced by more and more non-performing loan ratio continued to rise, traditional internal audit model has been unable to fully meet the modern commercial banks and development It needs. Therefore, China’s commercial banks urgently need to use the new audit model to understand, assess and respond to their internal audit risk.Risk-oriented internal audit is an audit of internal audit in various industries in order to deal with the concept of occupational risks arising. It is the first to confirm business goals, and objectives for risk management and risk control, and finally test the actual internal control can effectively manage the risks that may arise as a result of the completion of the goal. It as a new audit concepts and methods, not only conducive to China’s commercial banks to improve the efficiency of internal audit, but also help strengthen risk management of banks, commercial banks in China to meet the requirements of internal audit. It is an inevitable trend in the development of internal audit is to complement the development of modern audit, internal audit industry to introduce risk-oriented internal audit imperative. However, our study of the theory and practice of risk-oriented internal audit is still in the exploratory stage, therefore, the research paper has important theoretical and practical significance.This paper introduces the theory of risk-based audit and specific to the H commercial bank, for example, review it’s current status of internal audit, risk-oriented and build internal audit model for the problems identified, revealing its risk-oriented use of internal audit processes and specific to the lending practices audit conducted simulation, and finally put forward a sound countermeasures, hoping to use risk-based internal audit in China’s commercial bank’s internal audit plays a role.