Optimizing The Internal Auditing Process Of Z Bank From The Perspective Of Modern Risk-Oriented Auditing

Commercial banks,securities institutions,and insurance agencies together constitute the main body of C hina's financial system.Commercial banks,among them,occupy the dominant position.On the one hand,commercial banks are financial entities based on credit and make profits from risks.Risks and benefits are complementary to each other.In recent years,China's commercial banks have gained rapid development as their businesses become more diverse and more individualized;meanwhile,the reform of the financial market system has been deepened,relevant policies have been continuously adjusted and interest rate pricing has become more market-oriented;the Internet has taken up part of the financial market along with its sudden boom.Sharper competition is witnessed among commercial banks.Banks are making their best attempt to maintain their market shares and meanwhile expand their business.As they continuously expand their business scope,they have also brought enormous risks to themselves as their business has become larger and more complicated.In the face of a wider range of businesses,larger currency volumes,higher operational risks,and less auditors,commercial banks have to accurately identify and quantify risks,improve internal auditing efficiency,and avoid or reduce operational risks in order to solve all the problems mentioned above and finally achieve sustainable development.As a new audit model,modern risk-oriented auditing emerges in such circumstances as a new trend.The model focuses on risk identification,assess ment and control,and is dedicated to helping companies avoid and reduce risks.Considering that modern risk-based auditing is a new auditing concept for internal auditors who are in all walks of life are dealing with risks.First,it is necessary to iden tify and determine the enterprise risk management objectives,then analyze the risks,and conduct risk assessment and identification for specific objectives.Exploring the planning,implementation,and maintenance of internal audit can be helpful to discover the flaws in internal auditing and provide suggestions to improve its practices.As a new concept and method of auditing,modern risk-based auditing can not only make the internal audit of commercial banks in China more efficiently,it also can help to strengthen the bank's risk management and assist the banks to meet the requirements of internal audit of commercial banks in China.This essay holds the view that the modern Risk Leading Audit(RLA)is an effective approach to fully identify and evaluate risks.The RLA can not only make the auditing process more accurate,but also satisfy bank Z's demands of internal auditing.By analyzing the status quo of Z Bank's internal audit implementation and assessing its major risks,the results show that Z Bank still has many risks,which reflecting its internal audit also has certain problems: the lack of macro risk assessment procedures,Insufficient audit work independence,inadequate using of audit results,and low auditing efficiency.The purpose of this paper is to provide a sound risk-oriented internal audit model for Bank Z.The disease is based on the concept of modern risk-oriented auditing,and proposes measures and suggestions for optimizing Z Bank's internal audit.It is hoped that the case study of Z Bank will provide a practical reference for the application of modern risk-oriented auditing in the field of commercial banks.