Study On Internal Audit In ZV Group

The new corporate governance standard in the United States requests all the listed companies must establish the internal audit department. The audit committee under the board of directors of the listed company is also requested to establish in our country, managing the external independent audit and internal audit work. The important function of internal audit in corporate governance has acquired extensive common understanding. But current the internal audit work in listed companies in our country is still weak, comparing with abroad. So study on the internal audit problems is helpful to improve on internal audit work,to strengthen corporate governance and to improve operation performance for listed companies in our country. This paper review the agency theory,corporate governance theory and internal control theory. According to these theories,we know the development motive of internal audit. The internal audit department plays a significant role in corporate governance as an important part of internal control system. This paper points out all the key problems of internal audit work in ZV group. These problems include, the internal audit department cannot audit the IT businesses; Internal auditors are hard to discover management fraud; Internal auditors cannot handle behaviors of breaking the law and the rules that they have founded; Internal auditors are hard to provide more value added services to management. This paper analyzes above problems existed in ZV group. The causes include, the management relation of internal audit is not so good because of the separation of top management duties and the audit committee not working; The owners and managers think the internal auditor as a supervisor only; The internal audit resources is shortage. The audit quantity guaranteed system is lacked. After analyzed the existed problems of internal audit in ZV group, this paper put forward as follows suggestion: strengthen to develop the audit committee under the board of directors; Integrate the audit resources and establish the triple-grade audit system; Establish the audit quantity guaranteed system; Attach importance to the follow-up audit; Strengthen to cooperate with the external independent auditors; Strengthen to communicate with the management, provide more value added services. And this paper suggests how to put forward into practice with these countermeasures.