Research On Internal Audit Quality Management System Of H Bank

In recent years,China's economy has shown a steady and rapid development trend.On one hand,this trend provides commercial banks a good market environment,on the other hand,the rapid growth of business scale and the rapid innovation of product category pose an increasingly serious challenge to commercial banks.Whether the internal control system is perfect is directly related to the risk resistance of commercial banks.However,the frequent occurrence of a series financial cases reveals that there are loopholes in the internal management of commercial banks,and it is urgent to further improve the internal control system and strengthen the ability of risk control.In the internal control system of commercial banks,internal audit which is as the third line of defense,plays both supervisory function and evaluation function,so internal audit is very important.Different from compliance check,which is as the second line of defense,internal audit tends to look through the phenomenon of bank business,and explore the business management reasons hidden behind the problems.Internal audit provides management advice with the board of directors to help commercial bank achieve the added value.The quality of internal audit directly affects the internal audit function.In view of the overall situation of China's internal audit quality management,there are issues such as independence is not strong,staffing is not in place,the audit method is relatively backward,the system process is not perfect,the quality management objective is not clear and so on.Therefore,establishing a standardized and efficient internal audit quality management system has become the top priority of many commercial banks.H Bank is a city commercial bank which is as a company with more than twenty years of development history,the internal audit department has been more mature.The internal audit department regards the internal control evaluation,risk management evaluation,executive performance evaluation,financial supervision as the four core functions.The internal audit department carries out special audit projects and economic responsibility audit projects by on-site audit method,at the same time,carries out off-site audit monitoring by off-site audit method.Although the internal audit department has achieved some work results,there are still many shortcomings in organization construction,institution construction,personnel construction,system construction,process control,quality evaluation and so on.This paper which is on the basis of drawing on the excellent experiences of internal audit,uses the principles ofmanagement,such as PDCA cycle theory,balanced scorecards.This paper tries to follow the COSO internal control framework to establish the internal audit quality management system of H bank from five aspects.These five aspects includes the internal audit environment,risk-oriented model,quality control activities,information and communication,quality evaluation.The purpose of this paper is improving the quality of internal audit of H bank,so that the internal audit department could play a better function and become the escort of H bank.