First, the internal audit analysis of rural commercial banks in China

1, the internal audit mechanism is not perfect.

Although the internal audit of rural commercial banks in China has been carried out for some time, there is no supporting internal audit mechanism to standardize and institutionalize the internal audit of banks. Therefore, there is a certain gap between the internal audit work of rural commercial banks in China and the standards of audit work, which may even lead to the lack of legal basis or legal basis for the internal audit work of existing banks.

2. The internal audit technology is relatively backward.

The internal audit method of rural commercial banks in China still adopts traditional detailed audit or personal experience audit, which is arbitrary and subjective, resulting in long internal audit cycle, high cost and low efficiency, which is backward compared with the current risk-oriented audit method in the world. This is mainly because the current internal audit work of rural commercial banks does not make full use of modern information technology, which makes the internal audit technology seem to be somewhat backward and the audit methods are relatively old.

3. The supervision power of internal audit is limited.

Although there are many outlets in rural commercial banks in China, they are scattered, and some staff even have direct contact with cash and securities, which leads to a little flaw in the internal audit of banks, which may have serious consequences. Unfortunately, the existing internal audit strength of rural commercial banks in China is not strong enough, and it also lacks the necessary supervision continuity, which greatly weakens the effect of internal audit.

4. The scope of internal audit is very narrow.

The internal audit of rural commercial banks in China still stays in error correction and leak detection, especially in auditing and investigating some specific violations of laws and regulations. Paying attention to the authenticity of accounting documents and other information, whether the business operation is standardized, etc., does not involve auditing the quality of credit assets, and does not involve putting forward certain opinions and suggestions on the deep-seated management system and supervision system within banks. Therefore, in the face of expanding banking business, its internal audit seems to be too slow to fully cover.

Second, China's rural commercial banks internal audit problems

1, internal audit positioning has limitations.

The trend of diversification of China's financial system is accelerating, which makes rural commercial banks face more and more fierce financial market competition. However, under such a challenging background, the internal audit departments of rural commercial banks in China have not strengthened their sense of cooperation. Therefore, the funds and equipment needed in the internal audit process cannot be well matched, and auditors have no reliable legal guarantee. This is mainly because the positioning of bank internal audit is not comprehensive enough and still stays at a low level. It only regards the internal audit department as a simple inspection and supervision department and does not give it higher authority.

2. Internal audit lacks professional audit institutions.

The internal audit work of rural commercial banks has no professional audit department in form, and of course it can't meet the standard requirements of internal audit. Only some rural commercial banks have set up audit committees, but their essence still belongs to the management and they have not gained substantive independence. Some banks also confuse the audit and supervision departments, which makes the internal audit work lack the necessary independence. In addition, the internal auditors of some rural commercial banks have a certain interest relationship with the audited departments, which makes it difficult to carry out the internal audit work independently with special nature and shortcomings.

3. The content of internal audit is defective.

The internal audit of rural commercial banks is often limited by many factors, especially the lack of necessary audit authority. Sometimes some audit departments can't attend the management meeting of the bank, it is difficult to obtain relevant audit meeting materials, and there are no supporting reward and punishment rules, which often leads to some defects or deficiencies in the internal audit of the bank. Therefore, the internal audit mode of rural commercial banks is still biased towards extensive management, ignoring the appropriateness, legitimacy and effectiveness of internal audit content, and still focusing on traditional financial matters audit, while lacking the necessary audits in other fields, thus affecting the effect of the whole internal audit.

4. The quality of internal auditors is low.

The number of internal auditors in China's rural commercial banks is insufficient, accounting for only one-fifth of that of foreign banks, and not up to the proportion stipulated by the People's Bank of China. Therefore, the limited internal auditors can not complete the heavy internal audit tasks. In addition, rural commercial banks were restructured from rural credit cooperatives, and many of their personnel management methods followed the human resource management methods of the credit cooperatives era. They lack highly educated and high-quality internal auditors, have not provided many opportunities to strengthen the training of internal auditors, and have not determined the access standards and assessment mechanism, which has caused a serious outflow of some highly skilled employees. In addition, rural commercial banks have been established for a short time, and internal auditors are not suitable for using modern audit methods, which greatly restricts the embodiment and promotion of internal audit value.

Third, the path of internal audit theory and practice innovation of rural commercial banks in China

In view of the development of rural commercial banks and the reform of rural finance, China has promoted the innovation and upgrading of internal audit of the financial system from the national policy level. As the re-control process of bank internal control, the innovation and upgrading of internal audit work is of great significance to the development of rural commercial banks at present. Specifically, the innovation and upgrading of internal audit can promote rural commercial banks to meet the requirements of external supervision, improve the internal management level of rural commercial banks and meet the interests of stakeholders, which is also a rational choice for the development of rural commercial banks under the market economy.

1, update the internal audit concept

For rural commercial banks, their internal audit work is first influenced by their internal audit ideas. In view of the lack of understanding of internal audit in rural commercial banks at present, the leadership and management still pay insufficient attention to internal audit. Therefore, rural commercial banks must first establish the concept of attaching importance to internal audit, which is the objective requirement of internal control and improving economic efficiency of rural commercial banks, is an important link to promote the reform of rural commercial banks and improve the internal restraint mechanism, and is also conducive to better safeguarding the legitimate rights and interests of banks, strengthening the construction of cadres within banks, and effectively promoting the integration of rural commercial banks with international commercial banks.

2. Give new meaning to internal audit.

The internal audit of rural commercial banks often has defects. Therefore, the content of internal audit should be changed from financial audit to business audit, and the internal management of banks should be improved, so that the supervision function of internal audit can be changed into service function, so as to guide its core work to change from simple financial audit to management audit and risk audit, and improve the internal audit methods, and strive to realize the whole process audit combining prevention in advance, control in the process and audit afterwards. And constantly innovate the risk management mechanism, establish a correct internal control concept, truly understand the connotation of internal control, realize the requirements of synchronous control and authorization control, and introduce an objective evaluation system, so as to make the internal audit work of rural commercial banks newer, more comprehensive and more reliable.

3. Improve the status of internal audit.

Many people in rural commercial banks have a low level of understanding of internal audit work. Therefore, the internal audit work of rural commercial banks should be repositioned and upgraded as soon as possible, and the nature and importance of its work should be widely publicized, and the macro-strategic level should be extended and expanded through the micro-implementation level, so that all employees of the bank can participate and cooperate together. The upgrading and innovation of this position will also promote the internal audit of banks to change its working role and improve its relative independence, so as to maintain the necessary independence in form and substance, increase the authority of internal audit and help improve the efficiency and effectiveness of internal audit.

4. Improve the internal audit system.

Rural commercial banks should improve corporate governance as soon as possible, so as to promote the reform and perfection of internal audit system, which is an important institutional guarantee for the smooth implementation of internal audit work of rural commercial banks. Then, banks should gradually establish a vertical management system of internal audit, set up a special audit department, and make it have a property right system with separation of ownership and use right, so as to make the board of directors the ultimate responsible person, so as to ensure the strong independence of internal audit work, thus making the internal audit work of banks more credible and authoritative. In addition, rural commercial banks can choose the personnel stationed system to arrange internal auditors, so that the internal audit department of branches can become the dispatched office of the head office, and divide the possible interest relationship between internal auditors and the audited departments to ensure the reliability and rationality of internal audit work.

5. Optimize the technical means of internal audit.

Rural commercial banks should strengthen the electronization of bank audit, do a good job in the management of relevant information, re-supervise the banking business with computer network as the technical condition, educate and train the internal auditors of banks on relevant knowledge, and effectively improve their information technology application ability, so as to make the internal audit process more modern and standardized, help to better determine the key points and difficulties in the audit, and improve the efficiency and effectiveness of the audit. Rural commercial banks can further expand the scope of internal audit after optimizing the technical means of internal audit, for example, strengthening the audit of innovative business and paying attention to the combination of business operation inspection and financial revenue and expenditure audit. Of course, at the same time, we should also train internal auditors, improve their computer application ability and pay attention to improving their professional ethics. We can fully mobilize the enthusiasm of auditors, adjust and equip the internal audit leading group, and establish a scientific and effective reward and punishment system and incentive and restraint mechanism, so as to truly grasp the quality of internal audit work.

In short, rural commercial banks, as the product of the transformation and upgrading of rural credit cooperatives, still have many places that need to be reformed urgently. Among them, internal audit is an important reform link. We should change the concept of internal audit as soon as possible, realize the innovation and upgrading of internal audit in positioning, function, category and resource allocation, so that rural commercial banks can better improve their internal management level in a short period of development and give full play to the internal re-control role of internal audit.

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