Study On The Internal Audit's Innovation Under Circumstance Of Integrated Risk Management

The risk is becoming the core value of enterprise, due to it's complexity and variety, and risk management is also becoming an important part of corporate govern. Having passed through two stages when taking fraud prevention and effectiveness promotion as it's target separately, Internal audit made adding value as it's goal at the end of 20th century because of the competition pressure coming from the external audit, and joined the movement of corporate govern. Thus, with the common goal of improving corporate govern. The close relationship has formed between risk management and internal audit on the base of interaction, for decreasing the transaction cost and getting the higher position in the enterprise's value-chain as well. Meanwhile, the weakness of traditional risk management and related theory's improvement are making the risk management changed tend to integrated risk management (IRM), which has such advantages as low cost and high effectiveness. Furthermore, IRM must be the trend of this field. Though internal audit has absorbed some methods of risk management, just like risk detection, risk valuing, risk control and so on, it still has to face with a few of new challenges, including more great accountability, more strict professional background and updating the methods of audit. Therefore, to keep up with the new change, internal audit need to take innovation in some respects as following: culturing the idea of IRM, improving the audit target, setting up the risk data and information system, building the enterprise's crisis warning and managing system, promoting the judge ability in risk auditing.