A Research On The Governance Effect Of Government Audit On The Risk Of Commercial Banks

Commercial banks work as the media function in modern financial system and play an important role in China's economic development,social resource allocation and financial market stability.In recent years,the frequent financial crisis has brought severe challenges to the national financial security,economic development and social stability.Strengthening the supervision of bank risk is very important for resisting the risks of the financial system and ensuring the national financial safety.The internal control of commercial banks and the audit supervision of the government audit institutions are the two important mechanisms to resist the risks of the state-owned commercial banks.The internal control of commercial banks is an important part of the risk management of commercial banks.Effective internal control can help commercial banks to identify the risks faced by them,protect the compliance of business and avoid huge losses.By revealing the weak links and potential risks in the management of commercial banks,the government audit puts forward targeted audit recommendations in a timely manner,and improves the risk management system and mechanism of commercial banks,so as to promote the standardized operation of commercial banks and resist the risks faced by them.Based on the four audit theme: financial information,non-financial information,system and behavior,in the practice of audit institutions audit business by focusing on financial revenue and expenditure,major decision-making and implementation,risk management,internal control,and honest business operations,reduce the risk of commercial banks,promote the stable operation of micro finance institutions.Through the audit institutions to mitigate agency conflicts and dealing with the information asymmetry,inhibition of opportunistic behavior,reveals the defects of design and operation mechanism of risk management,puts forward the suggestions to optimize the audit rectification,risk management of commercial banks,reduce risk,interest rate risk,liquidity risk and operational risk faced by commercial banks.The first part is a literature review,combing the previous classification,factors on commercial bank risk,research on government audit and financial security and internal control and the risk of commercial banks;the second part is the theoretical analysis and research hypothesis,respectively analyzes the government audit and internal control to resist the risk of commercial banks and internal control mechanism in government audit effect of intermediary role of commercial bank risk in the process,and put forward the corresponding research hypotheses;then a research design and statistical test,empirical data 2005 to 2016 listed commercial banks,inspection of government audit risk of commercial bank governance effect and the internal control of commercial bank's intermediary role.The results show that government audit helps to curb commercial bank risk,and government audit can further reduce the risk of commercial banks by improving the quality of internal control of commercial banks.The last part is the conclusion and suggestion,summarizes the research content of the full text,and tries to put forward the corresponding feasible suggestions.The possible incremental contribution of this paper is to explore the path and mechanism of government audit in resisting commercial bank risk,and to study its interaction with internal control,so as to provide theoretical support for improving the risk management of commercial banks.It enriches and expands the existing research literatures about government audit and commercial bank risk.It has a strong practical significance for improving the internal control system,strengthening audit supervision and guarding against financial risks,and provides an important reference for maintaining financial safety.