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Probing Into Internal Audit In Private Enterprises

Posted on:2005-10-08Degree:MasterType:Thesis
Country:ChinaCandidate:H H LiuFull Text:PDF
GTID:2156360122999105Subject:Accounting
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Private enterprises have acquired the substantial development in size, asset and total economy value since China started to reform and open-up. Private capital economy have become an important part of our national economy, which have developed more and more important action in insuring national economy stable growth, alleviating employment pressure, improving economic structure, facilitating technique innovation, booming the market and keeping society stability etc. As an important part of internal management, the internal audit system has important meaning for private enterprises in developing corporate governance and promoting the capacity of competition. However, the establishment of internal audit in private enterprises differs from that in state-owned enterprises. It is a kind of active selection in order to improve its benefit of management, so the establishment of internal audit has very big random, the setup of internal audit is in short in system .But the government has no intention to interfere with the problem of setup of internal audit in private enterprises, which results in many flaws in internal audit of private enterprises such as the confusion of the institute. Therefore, perfecting internal audit has become a key factor for private enterprises to establish modern corporation system.This paper is divided into five parts. In first part, I introduce the background and research method of this paper.In the second part, the history of evolution of internal audit in the western company was looked back first, and its main character was generalized. Along with high development of economy and fast fierce advancement in technology and science, the internal audit will reform in audit idea or audit system. The internal audit will develop quickly. In order to develop internal audit in our country, it is important to draw lessons from the experience of internal audit evolution in western company. First, we should replace the company system arrangement and promote its position. Second, in working talent of auditing, we should value the working talent and change the pure finance audit into all-directions administrative audit. Third, the step of internal audit occupation should be quickened. And competition system of internal audit will develop, which facilitate the internal audit personnel's character. Finally, we should lead risk gauging system into internal audit and develop risk management.The third part introduces the history of internal audit in our country privateenterprises. The process of evolution of private enterprises was introduced, and after that we reviewed the evolution of internal audit system. So we draw a conclusion that evolution of internal audit system will propel development of internal audit in private enterprises. In property owner system, there is no need to establish the internal audit. In partnership system, in order to settle the information dissymmetry problem and internal management, the company usually put internal audit to exterior. Until the corporation system appeared, ownership and operation have been separated, which resulted in agency relation emerged. For the sake of the assets, the real internal audit appeared.Some problems existed in private enterprises that need to be resolved were talked about in the forth part, and analysis the reason that produce these problems. Seeing from company oneself characteristic, the property character of private enterprises weight as oneness and exclusion, the "an only big" phenomenon is more widespread. At same time, the creditors are not willing to become a part of corporate governance because the debt-assets ratio is too low. So the administrative decision mainly concentrated in the big common stock holders. These will affect the relative independent character and authority. The tallest management layer attitude also is a key to affect internal audit. Seeing from exterior environment factor, the relevant law system is an important part to quicken the internal audit in private enterprises. The internal audit in China developed gra...
Keywords/Search Tags:private enterprises, internal audit, corporate governance
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