Enhancing effective banking business for internal auditing and risk management system which allows to react problems and soluta in proposals case study on the examination ata commercial banks applications

Set of techniques and procedures are designed to provide reasonable assurance thatbusiness objectives will be achieved effectively is defined internal control system.As in all company management, internal auditing function has an important role in bankmanagement. Efficient internal auditing and risk management systems are needed inorder to continuant the banking operations in a fully and trusty way. Each bank?sbanking operations can be different from each other and each bank may have internalauditing and risk management understanding peculiar to each other. But all banks areobligated to audit their operations according to the banking rules and laws. For thispurpose banks should employ enough auditors.By borrowing financial founds and giving loans to costumers banks are the mostdetermined rings of the process of the financial intermediation. Because of moneytrading and liquidity of their assets banks face high level of risks, to minimize risks andcontrolling risks are main issues in bank management.In this study, the reasons why banks are needing effective internal auditing and riskmanagement system and main components of effective internal auditing and riskmanagement in banks are evaluated. In this context, after evaluating operationalstructure of banks and the components of internal auditing and risk management systemin commercial banks than a model is tried to be introduced for the purpose ofdeveloping control techniques and procedures and examples of specific controltechniques and procedures which are applicable in banking internal auditing and riskmanagement system are tried to be developed with this model.Keywords: Banks, Internal Auditing, Risk Management, Basel Principles