Research On Risk-oriented Internal Audit Of HNZK Agricultural Development Bank

With the changing economic environment,as well as the rapid development of information technology.The internal and external environment in which banks are big changes have taken place.Risk diversification of types from single to change direction,how to better implement the various types of risk management and control,is the key of Bank to achieve business objectives,maintain long-term stability and development.Internal auditing for risk management of the bank's third line of defense.Its importance is self-evident.Based on the background like this,internal audit banking system reform,more an more internal audit work do as the method of risk-orieted auditing.Its not only in accordance with the requirements of international practices establish the modern enterprise system,but also to meet the requirement of strengthening the internal management,prevent and defuse operational risks,increase economic efficiency about the bank.In the financial system in our country,The agricultural development bank of China(ADBC)as an policy bank,it dircet carry out the goverment policy about support the develomnet of countryside and agricultural,not to profit as the main purpose.With the recent developments in the economic situation and the country's financial system reform deepening,of internal and external environment faced by agricultural development banks have a big difference with the early times.This internal audit of the agricultural development bank also put forward higher requirements.Traditional internal audit has been unable to meet the current demand,risk oriented internal audit in the adoption and promotion of the system of agricultural development bank.Although the current study on risk-oriented internal audit results have been very rich,but on the concrete application of ADBC related literature is still relatively small.Due to lack of appropriate references,and the impact of ADBC's own institutional issues,risk oriented internal audit in agricultural development banks in particular the municipal branch of the application is not ideal.Based on the situation,in this paper,HNZK this city secondary branch of agriculture development bank to study,using a combination of theoretical analysis and case study research methods,study on risk-oriented internal audit work carried out.According to "introduction-theories-case object the problem and its causes sugges--tions" basic research ideas.On the basis of systems theory,strategic management theory and risk management theory,to discuss the HNZK of agricultural development bank risk-oriented internal audit problems as the theme,analysis of HNZK agricultural development bank risk-oriented internal audit problems and causes,then put forward some suggestions on perfecting risk-oriented internal of HNZK agricultural development bank.Frist of all,this article elaborate the definition,characteristic,function of risk-oriented internal auditing.Then a risk-oriented internal audit needed environment,and in accordance with audit preparation phase,implementation phase of the audit,the audit report and a follow-up audit stage of the order for the implementation of risk-oriented internal audit program.The concepts and theories,for the analysis of risk-oriented internal audit of ADB in HNZK problems and causes,then put forward some suggestions laid the theoretical foundation.Secondly,taking ADB of HNZK as a case study,general situation of the risk-oriented internal audit,including auditing programes,auditing procedures and other aspects of the project for introduction,finally summarizes the disadvantages of risk-oriented internal audit in ADB of HNZK,including:(1)Risk oriented internal audit advisory functions not fully reflected.(2)Interests and relationships affect the risk-oriented internal audits add value.(3)Current lack of audit supervision and evaluation of the risk management system.(4)Low efficiency of audit work.(5)The audit results using insufficiency.(6)Auditing cannot meet the needs of risk-oriented internal audit.Then the causes of existing problems of risk-oriend internal audit in ADB of HNZK are analyzed,mainly involving the following aspects:(1)Lack of awareness on the service function of the Advisory function of the units.(2)Lack of independence and objectivity of the internal audit.(3)Existing risk management systems and risk early warning mechanism is not perfect.(4)Inadequate information technology audit.(5)Performed on the follow-up audit of the implementation is not in place.(6)Internal Auditors ' knowledge structure is irrationalFinally,after getting existing problems and cayses of risk-oriented internal audit in ADB of HNZK,suggestions are put forwad to perfect the situation form the following aspects:(1)Strengthen the internal awareness of the added value of risk-oriented internal audit.(2)Strengthen internal audit independence.(3)Optimize the existing risk management system.(4)Enhance the application of information technology audit.(5)Enhanced audit outcome of conversion.(6)Improving comprehenasive quality of inter--nal Auditors.This paper aims to enrich the risk-oriented internal audit in the second-level branch of agricultural development bank of practical applications of research,for the same level of agricultural development bank branch to further improve the current risk-oriented internal audit,improve the efficiency of banking,promote value-added provi-de a reference.