The Foundation And Operation Of The Heaven Limited Company's Inner-auditing System

Since the first foundation of the auditing agency in our country, the organization system of the agency, which covered government audit, internal audit and public audit, has been primarily formed. The different agencies work corporately and focus on different are respectively to adapt themselves to the new audit requirements coming from the multi-ownership economy in our country. Along with the continually developed economy reforming and the generally complicated market environment, current internal audit system has been discovered its weakness which not only restricts internal audit, but also blocks the further development of economy and the reforming. Therefore, establishing the effective internal audit system and improving the system becomes so urgent.This thesis is mainly focusing on the practical research, by using the theories of Audit, General Management and Accounting to analyze the current status of internal audit in companies in our country. In the thesis, I have deeply analyzed the necessity and importance of internal audit. Through the detailed description of the generation and development of internal audit, and the feature of internal audit in western countries, seven directions and trends of internal audit development in our country have been clarified. By comparing and analyzing the organization models of internal audit in different countries, I proposed the most suitable organization model that was in line with the requirements of modern enterprise system in our country and reasoned its rationality and scientificity. This model is basically consisted of AuditCommittee that reports to the board of directors, and Audit Function that is established in business management system.In this thesis, I have studied the establishment and operation of internal audit system in Heaven Company Ltd. Through analyzing and evaluating the system and the problems existed in the system, I have proposed a series of improvement actions that covered organization structure, objective, method and manpower. An entire internal audit system has been described in the thesis, to fit the requirements of the company's current situation and long-term developmentIn the five basic internal processes of the company, purchasing process and payment process are the two most important ones where major weakness has been identified and improvement are urgently needed. Therefore, I chose these two processes to deeply study and analyze. After identifying the control points and weakness area, I suggested the key control points, relevant control and key for internal audit.At the end of the thesis, I introduced the implementation results, problems occurred and countermeasures, supported by a series of analysis of data and diagrams. I have also setup a guideline to facilitate the establishment and running of internal audit system, basing on the current situation of Heaven Company Ltd.Many reference books have been quoted during my study. I believe that the result will provide very useful information to the practice and study of internal audit in the companies in our country, and will bring quite valuable reference to the establishment and operation of internal audit system in large joint-stock company.