Improving Internal Audit in Commercial Banks

In the context of rapid financial globalization and ongoing digital transformation, the effectiveness of internal audit systems in commercial banks has become increasingly critical for ensuring financial stability, transparency, and sustainable development. Modern banking operations are characterized by growing complexity, increased regulatory pressure, and the widespread adoption of financial technologies, all of which significantly elevate the importance of robust internal control and audit mechanisms. This study examines the current state of internal audit practices in commercial banks, focusing on identifying key structural and functional challenges that affect audit efficiency, objectivity, transparency, and risk management. Particular attention is given to issues such as insufficient integration of internal audit with enterprise risk management frameworks, limited use of advanced digital tools, and gaps in auditor competencies, especially in IT and data analytics. The research further explores the strategic role of internal audit in strengthening corporate governance systems, enhancing compliance with international regulatory standards, and improving the reliability of financial reporting. It emphasizes that internal audit is no longer limited to traditional control functions but has evolved into a value-adding activity that supports decision-making processes and organizational performance.