Research On Internal Audit Performance Evaluation Of Local Commercial Banks

Finance is the core of the modern economy,and the financial sector is also known as the blood system of economic development,of which the banking industry,as the backbone of the financial sector,is also known as the hub of the functioning of the national economy.As the key entity supporting the financial industry,commercial banks have embarked on a fast track of rapid expansion against the backdrop of the growing financial market,which has put urban commercial banks under tremendous pressure while seeing opportunities for development.As an important part of the bank’s internal system,a scientific and reasonable assessment of internal audit performance is an essential step to improve the current state of internal audit work and add value to the organisation.Therefore,this paper selects Bank N as the case study object for analysis,and analyses the current situation of internal audit and the basic situation of the work of Bank N.It is found that the bank’s current internal audit mainly performs the functions of post-facto supervision and error detection and correction,and is limited to compliance checking,and lacks a set of perfect internal audit performance evaluation system.This paper evaluates Bank N by designing an internal audit performance evaluation system based on the balanced scorecard approach.On this basis,the AHP method is used to reasonably proportion the weights of each dimension and indicator,thus making up for the shortcomings of the original system and enabling the performance evaluation system to provide a more accurate and comprehensive assessment of the quality of internal audit.The new evaluation system was then applied to the evaluation of the internal audit performance level by means of expert ratings,and the results were analysed in detail.The results of the study show that the internal audit performance management and accountability mechanisms of Bank N are not yet perfect,and that they have been set up in a formal manner without being fully effective,and are not better able to control the risks that may arise in the future.Based on the shortcomings in the internal audit process of Bank N,this paper provides suggestions for improvement in terms of improving the professionalism of internal audit staff,strengthening the transformation and application of internal audit results,obtaining adequate attention and support from governance and management,and strengthening the ability to apply internal audit digitisation,in the hope of helping the company to better improve its internal audit performance.