Bank in the implementation of internal audit who exposed the deep-seated problems

Abstract: the implementation of internal audit work to be done in people exposed to make a deep analysis of the problem., 998 management system of the People's Bank to remove provincial branches, the establishment of nine lines and two large areas directly under the battalion headquarters Department: merge relevant departments and bureaus at the same time, divert surplus staff, set up a special on this basis, the internal audit agency, hopes to internal audit work, supervision of the People's Bank and its staff strictly enforce the <"China People's Bank Law"> and other relevant Laws and regulations, work objectively and fairly, to prevent abuse, unfairness; supervision of the People's Bank to fully and efficiently discharge responsibilities of the central bank to improve work efficiency and quality of work to prevent negligent of its duties.

Four years on, the People's Bank internal audit departments at all levels through internal audit and oversight, the People's Bank in strengthening the internal management and standardize the business people of the banking system to correct violations, and effective risk performance of their duties and so have played proper monitoring and facilitating role. but by many factors, internal audit is not adaptive gradually exposed.

First, the current People's Bank of the main problems of Internal Audit
(A) persons. After several years of audit practice and exercise, the People's Bank has already produced a number of high awareness, professional, will audit, internal audit cadres of good analysis, but there are still many problems: First, a branch of level less than the number of internal audit cadres. branch-level internal audit department is responsible not only to the head office arranged special audit task organization, implementation and summary, but also bear a 3 to 4 year cycles of the area center branch (as little as 20 home, as many as 50 more than) a comprehensive audit, Auditing, and branch of leading cadres in the lead in organizing the special audit and verification tasks, but the branch is equipped with internal audit cadres generally only about 10 people. Due to its weight, understaffed, and many compromised the quality of the project. Second, the structure is irrational, the lack of Information system audit professionals. Information systems audit is carried out in recent years, the People's Bank on the development and construction of computer Information systems, operating environment, use and maintenance of internal control the audit. Information system not only requires auditors to audit the people have extensive banking business, in-depth understanding, and requires auditors with extensive computer and network knowledge. Only both fine business, and precision computer, so as to better carry out Information Systems Audit. The internal audit department of the People's Bank is currently such "amphibious" Talent is rare. In addition, the branch of an internal audit department's information technology audit professionals engaged in information technology audit in addition to also take a lot of outside routine audit assignments, daily work is quite busy, lack of time and effort to learn the ever-changing computer knowledge and application of related technologies, and lack of professional training, professional competence decreased over time. Third, there is no clear entry criteria and assessment mechanism, internal audit difficult to guarantee the quality of personnel. Western countries commercial banks were generally higher internal audit staff requirements, such as England and France provides: all internal auditors are required to have a college education, accounting or other business in the banking sector for many years work experience (typically 5 years or more), with CPA or Certified Internal Auditor qualification. They also audit the quality of personnel and professional ethics to conduct regular assessment, on mainly the staff and even unprofessional warning or even cancel their qualifications. By comparison, the People's Bank, this is still a blank.

(B) the same level oversight difficult, auditor independence need to be further improved. There are four main reasons: First, the various departments within the People's Bank at the same level of supervision and understanding of internal audit departments have yet to be improved. Some regulators believe that a peer supervision is to give them the additional burden of work is turned "gun" to fight their own people, will be "scandalous," outside the Yang, the greater the internal audit department's results, on their own people's "mass destruction" bigger, and thus no internal audit understand, do not match; Second, the independence of internal audit department of the inherent fLaws. the first internal audit departments to accept the direct leadership of our President, while in business to accept the guidance of superior internal audit department, which after the first horizontal straight management mode governor has a "player" and "referee" of the "dual identity", if the internal audit department discovered the issues related to our leaders or our interests, are often major issues to minor ones, and in the audit report the report is inevitably information "filtering" phenomenon; followed by internal audit departments and sectors must exist between the more or less the same level of interest, but most will not start auditor or internal audit department is always in the work, and supervision departments and their personnel are there different kinds of relationships, it is difficult detached, independent manner. Third, there are concerns about the work of internal audit cadres. part of the internal audit cadres worried that internal audit will be to their dry competition for employment, selection of advanced (including the internal audit department of the Bank's comments in the first), year-end assessment, the last one eliminated and other adverse effects, and thus can not adhere to the principles at work, scared to sinners. Fourth, the internal audit department responsibilities, rights, and interests do not match, only the inspection and administrative handling of the proposed right, without penalty, the prestige of internal audit through the audit implementation of the conclusions is difficult to establish.

(C) audit methods behind. At present the People's Bank audit of internal audit or rely mainly on personal experience in the audit sample to determine the audit approach, without the use of modern audit of the prevailing system-based audit, risk-based audit and scientific proof by statistics random sampling method, the face of voluminous types of information, documents, reports, auditors or clear lights Gu Ying, Haoshouqiongjing each review, or subjective judgments by virtue of random sampling. the first case, often result in the audit of the long, audit costs high, low efficiency audit; the second case the audit were to determine the operational capacity and experience of its own, the audit were a little careless, they will miss some key clues and questions, and whether the problems found statistically significance, can not judge. hardly scientific characterization.

(Iv) Auditing the lack of scientific, quantitative evaluation index system. Leaving forensic audit function is a manifestation of internal audit, that the performance of their duties during his tenure outgoing person to conduct verification and evaluation. Many of the audit staff at work the conclusions of the audit was particularly hard to leave, the this is due to leave the responsibility to distinguish between the complexity of the audit, including: the distinction between direct and indirect management responsibility for management responsibilities; the important distinction between the general leadership and leadership responsibility; distinction between personal responsibility and collective responsibility principles; distinguish the former, either between the responsibilities and commitment to reform the distinction between responsibility and decision-making errors, etc., its conclusions must be prudent and appropriate. On the other hand is due to the current lack of a relatively scientific integrity of the evaluation index system. Although <"China People's Bank of leading cadres leaving auditing system>> on the content and Auditing standards qualitative description, but the scale of the operation relies heavily on subjective judgments of auditors. As each auditor to determine different standards, some of the "eyebrows beard grabbed" of the problem is too trivial, and some directors to avoid light, secretive, avoiding the main contradiction of the conclusions of the audit objective and fair.

(E) the lack of routine monitoring means. At present, the People's Bank of the internal audit is still in a particular point in time, a period of static checking phase, the special audit task more performance for the sports-style after the disposal system, the dynamic, ex ante forward-looking, preventive check was insufficient, the work is difficult to detect the problems, the audit of the early warning and prevention of risk is not effectively play the role.

(F) audit methods are backward, computer-aided software development and application of the audit is still blank. Current information system developed by the People's Bank has reached twenty, covering the monetary policy, financial supervision, financial services and internal management of all aspects of People more and more difficult to bypass the bank's internal audit computer. but a late start, the People's Bank Information Systems Audit and exploration is still in experimental stage, yet development and application of computer-assisted audit software, has been carried out and are ready to launch the Information Systems Audit project is still dependent on manual operation.

(Vii) primary audit agency to set yet straightened out. Currently the People's Bank has established a sound from top to bottom audit institutions (Internal Audit Division - Internal Audit Division Internal Audit Department, one by one - internal audit Kong), the relative three a level set in terms of the county branch of internal audit Kong remains to be straightened out, mainly in the following aspects: First, the internal audit Kong people only one person or part-time, does not meet the requirements of audit carried out double; the second is not explicitly County Branch Post treatment of internal audit staff, internal audit dampened the enthusiasm of cadres. the characteristics of internal audit requirements of internal audit staff should not only have profound theoretical knowledge but also has a wealth of practical experience, so the county branch of internal audit for the line in the post of personnel backbone of the business. but transferred to the post after the audit, as just a job, some cadres have lost the Chief (Deputy Chief) positions, the relative reduction of duties allowance, great views; and no post office cadres transferred to internal audit later, because the future bleak, are not enthusiastic about the work. Third, "post" setting lead to management difficulties. In recent years, human head office internal audit mandate, the Division issued Division issued a document in the form of more use to the post office branch in use for the internal audit Department issued a document, reads the object is charged to internal audit of the Division Office, and charged to internal audit to the Division Office, because the subordinate body is anchored in the other departments and branches and have different internal audit post, reading the object is difficult to clearly and norms . and if not using the line to meet the people posting in the form of the relevant provisions of the Bank of document management.

(H) arrangements for the audit task is unreasonable, repeated lack of audit and supervision are intertwined, the audit program fits, does not reflect the strengthening of internal management audit and constructive. At present a comprehensive audit of internal audit, outgoing audit and special audits and business unit audit missions often "crash", is often superior business offices just had a comprehensive audit of internal audit departments, internal audit of the special audit of the level content is included in the comprehensive audit and immediate approach, coupled with its competent authorities inspection, audit content repeatedly. The provisions of the People's Bank, file normative legitimacy and Law enforcement has become very inadequate inspection, occurred shortly before the prosecution of the People's Bank along with commercial banks qualification approval procedures illegal events, both exposed the problems in operations, but also reflects the lack of internal audit oversight. followed by a comprehensive audit, the audit of the program fits the outgoing, not for the individual characteristics of "tailored" to the average force on the audit, of focus situations occur. Links to Research Papers Download http://www.hi138.com Second, countermeasures and suggestions
(A) increasing the independence of internal audit departments to improve supervision at the same level. The independence of the soul and essence of the audit feature. International Organization of Supreme Audit released in 1977 <<auditing rules guide - Lima Declaration>> in to independence as a special chapter set from the audit agency, members of the three aspects of financial independence to do a full exposition, said: "supreme audit institutions must be independent of foreign influence is not subject to outside Beishendanwei to objective and effective to complete its task. "IIA established in 1978 <<Practice of Internal Auditing Standards>> also said:" Internal Auditor on his audit activities must remain independent. This independence allows the internal audit Teachers free to work objectively. lack of independence, internal audit can not get the desired results achieved. "internal audit departments to enhance the independence of the People's Bank, improving peer supervision, can be considered in two ways: First, internal audit presence system, increase the head office under the line of control efforts. Head Internal Audit Division is responsible directly to the president, reporting to the President; lower line of internal audit at the (Division) for the higher line presence, leading the line above the main level, and in personnel, funding independent, the lower line of the audit results directly reported to the higher lines. Second, in the case of maintaining the existing system, the audit project to the "under investigation level," which, as far as possible the same level monitor "off-site audit "and" joint audit "approach.

(Ii) to increase the depth of internal audit oversight. The review of the issues to the point, to depth, to the work of the unit being inspected to play a real role in promoting. Dai president pointed out in the early days of internal audit: internal trial work to "easy to difficult, and gradually increase. first caught the financial, capital, internal audit, internal audit and gradually strengthen administrative enforcement, on this basis, the efficiency review." In order to meet the characteristics of the work of the New People's Bank, internal audit work emphasis should gradually move from compliance checks, to the performance audit, risk audit of the transfer, from the ex post facto, static monitoring, and gradually to the before, during, after the combination of dynamic, systematic monitoring direction, to effectively step up construction off-site audit of internal audit technology platform, the use of the People's Bank within the electronic network, connecting all services and regulatory information database, so that everyday business situations and real-time data collection and monitoring, so that more targeted site audit, The People's Bank to further promote sound internal management system. In addition, the use of audit results to establish a sound mechanism to strengthen the tracking of audit findings and implementing monitoring of the situation, dealing with the audit opinion letter.

(C) Establish and improve financial supervision and financial services, appraisal index system. For financial services and financial regulatory features of the various functional departments of the business, according to a comprehensive, effective and cost-benefit principle, in the off-site assessment and field evaluation Index established two important aspects related to the system, the various functional departments of the People's Bank of organization system, Zequan Li division, internal control system, indicators of the effectiveness of the business assessment and management.

(D) the establishment of internal audit quality control standards, to further improve the standardization level of internal audit work. Internal audit work to move towards standardization must have a system of scientific quality control system. The system should be the basic audit system (including internal audit the organization , the auditor should have the basic qualifications and job requirements, internal audit duties, powers, penalties), special audit system (special audit procedures), the audit guide (instructional methods and operating instructions) and quality control system four parts. full control, assessment, evaluation of the quality of internal audit staff, organization and implementation of internal audit, internal audit report on the quality, standardize the behavior of internal audit staff, a clear audit responsibilities, reduce the internal audit staff to bring the subjective judgments of random and biased to promote auditor objective, fair and efficient discharge of duties.

(E) strengthen the theoretical method of Research, and constantly improve the level of the internal audit work. First, internal audit departments to have a sense of innovation at all levels, to be successful in practice, constantly sum up experience, and actively explore theories and methods of audit. The second is to fully study the absorption and use of modern audit results, audit techniques and methods, absorbing, Department of drops into the stream, gradually introduce system-based audit, risk-based audit and scientific sampling methods. The third is to make full use of computer audit tools, Research and development or introduction of suitable audit software, such as a comprehensive audit of routine audit work, leaving the audit, you can gradually use the computer to read accounting, treasury, distribution and other business processing system database and check classification, statistical analysis, trend analysis, total and subtotals , grouping, indexing, filtering and other operations, which will check the audit staff from the mechanical freed to focus on analysis and determine the audit. The fourth is to establish an internal audit database, internal audit departments to achieve higher and lower levels, special audit, comprehensive audit and information sharing between the outgoing audit to improve efficiency and quality of the audit.

(F) branches of Commercial Banks from abroad without the practice of internal audit institutions and audit institutions branch of the People's Bank system that is not the county, working hard to carry out, difficult to play the role of the situation, the proposed revocation of the county branch of internal audit Kong, full branches and the Central Branch of internal audit power, by the branches, the central branch "under investigation level."
(Vii) introduction and training of personnel. Talent is the key factor in good work, internal audit departments to actively introduce the "shortage" on the basis of talent, based on their training, increased training efforts. First, to strengthen the theoretical study, the internal audit cadres, and technical proficiency in audit theory to better guide the practice. The second is to strengthen the skills of the training. to the special inspection for obvious problems and weak links occur easily summarized identify such problems, shortcuts, to have the purpose of training, to share the experience to write papers, detours, and improve efficiency. The third is to prevent the waste of human resources, through industry-specific training to update their knowledge and master new skills. such as computer personnel, accounting, training of personnel training in sync with the industry otherwise, could have formed the "amphibious" and decline of talent, and gradually turned into a single human, resulting in waste of human resources. Links to Research Papers Download http://www.hi138.com