Research On The Construction Of Value Added Internal Audit System In H City Commercial Bank

In recent years, quite a number of medium-sized commercial banks have erupted in illegal cases. The Basel Committee believes that the failure of the internal control is a very important reason to the loss of commercial banks.Nowadays, our country banking business development presents new characteristics of internal and external environment,reform of the uncertainty of macroeconomic policy and market-oriented interest rate brings opportunities and challenges to the development of banking industry,also takes great impact to the traditional profit model and risk control methods for the medium and small commercial banks. The internal audit of commercial banks is an important protection mechanism to prevent the risk.To improve the internal audit system,overcome the difficulties in the work, give full play to the functions of internal audit and improve the risk management of the bank is the focus of the current issue of the commercial banks audit department heads need to think about.Value-added internal auditing is an independent, objective assurance and consulting activity, it takes a systematic and programmatic method to evaluate the risk management,internal control and governance structure to achieve the audit objectives. Value-added internal Audit responsible for the improvement of the internal control and strength the internal risk control and improve the operations management level of the bank. There is a big gap between the H city commercial bank and large state-owned commercial banks in the scale of operation, the power of internal audit and risk control level. Its governance structure is imperfect, there is a big flaw in the internal audit system, internal audit technology needs to be improved, the management of internal audit staff need to be strengthen, he internal audit department is difficult to play a role, working system become a mere formality. Therefore, to improve the construction of the internal audit system of H city commercial bank,, is particularly important for the full play to the functions of internal audit.Taking H City Commercial Bank internal audit system as an example, through its internal audit system, personnel and audit process, to evaluate the H City Commercial Bank’s system of internal audit, found unreasonable audit governance structure in the process of the internal audit work, internal audit concept and method is not advanced, audit personnel management needs to be strengthened. In view of the problems exposed in the H City Commercial Bank’s internal audit system, this paper puts forward that establish the value-added internal audit system, strengthen the independence of internal audit, improve the quality of personnel management, to carry out off-site audit and improve the internal audit technology. This will not only help to improve the risk management level of H City Commercial Bank,but also has an important reference for the improvement of the internal audit work.