Construction Of The Risk-based Internal Auditing Procedure

Since the middle period of the sixties of the 20th century, the audit risk is strengthened day by day, with aggravation of the competition and the increasing of the bankrupt enterprise. In order to reduce audit risk, people begin to carry out a series of dispute and study to the audit risk, the western countries began to revise the criterion of auditing extensively in the eighties of the 20th century, have produced a kind of mode of auditing—Risk-based auditing. Because this new audited mode can meet the people's demand for the expected value of auditing, the risk-based auditing have been used widely in the field of auditing of the western countries, have brought very good auditing efficiency and result. Comparatively speaking, in the auditing field of our country, especially in the internal auditing field, it doesn't cause enough attention yet to the risk-based auditing.Our country began the internal auditing in the eighties of the 20th century, has been making use of the transaction-based auditing and system-based auditing. In recent years, the enterprises face greater and greater risk to survive and develop, the old mode of internal auditing can't meet the demands of enterprise's administrators. Under the market economy condition, the business chance and risk are two important factors of determining enterprise's success or failure, the internal auditing should not only offer real-time and lasting control, but also help enterprises to make strategy to the risk. In order to make enterprises seek survival in the competition and seek development in the risk, the internal auditors should apply the risk-based auditing, and launch the risk-based internal auditing actively, however, how to carry out the risk-based internal auditing, how to make use of the new audit mode, it's the urgent problem to be solved to the internal auditing.The article analyzes the current situation of the internal auditing technology of China, and expounds the necessity to launch the risk-based internal auditing in China,...