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The Study On Internal Audit Of National Electricity Company

Posted on:2006-12-09Degree:MasterType:Thesis
Country:ChinaCandidate:R F LiuFull Text:PDF
GTID:2156360152970098Subject:Accounting
Abstract/Summary:PDF Full Text Request
The basis of electrical system innovation in China has four parts: Separate Power generation and distribution functions; charge for electric power based on a competitive price; break up monopolies; and enforce a competitive environment. Since the Ministry authorized competition in March 2002, several competitive companies have already been established, such as the publicly owned National Electricity Company, Southern China Da Tang, China Hua Electricity, China National Electricity, China Electricity Investment and four affiliated companies as well. An internal audit system was established in the National Electricity Company and recorded in the Company regulations as a result of the efforts of the Chief Auditor. The Head Company, Local Electricity Company and Provincial Electricity Company own independent audit department. Several questions arise after a year of operating the internal audit function; how do we fully understand and adapt to these new innovations; how to serve company operations better; how do we achieve managements targets; These are hot topics and the major concerns of the internal audit department of the National Electricity Company. So these questions have both theoretical and practical value with regard to examining the internal audit functions.First of all, we discussed the relationship between the internal audit and internal control. We discussed the key functions and responsibilities of the internal audit function. Additionally we discussed the basic theory. Then in accordance with the fundamental nature of National Electricity Company, we need to apply more research to target key internal audit functions. Later, we may focus resources on other broader topics such as researching the primary operations; internal audit issues within Fujian Electricity Limited Corporation (FELC). We also need to apply research to the goal of strengthening the internal audit function of Fujian National Electricity Company.The key new ideas presented in this article:1. Internal audit plays a critical role in the organization of an management control system. It is a major tool for supervision and integration of internal control procedures into the general workflow.2. Four primary functions of internal control are supervision, evaluation appraisal, information communication and consultant. These functions are connected closely, however, in specific audit project, due to different audit client, the four functions might bias, and it changes following environment.3. Internal audit is the Feedback Part of the enterprise management system. Audit targets, audit contents and audit functions, each respectively fulfill economic responsibilities, establish and implement the enterprises regulations, maintain and increase assets.4. For example, FELC based on an analysis of major problems and identification of their sources, developed strategies to strengthen the internal function.
Keywords/Search Tags:National Electricity Company, Internal audit, Internal control
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