Construction Of Risk-oriented Internal Auditing Procedures

With the development of economic globalization, enterprises face more and more risk. In November,2008, SASAC issued the Notification about National Enterprises Carrying on Com-prehensive Risk Management Work and Related Matters in 2009, requiring every national en-terprise to put comprehensive risk management work on the top of daily business management. The Investigation Report about Internal Auditing Hot Issues of 2009 issued by China Institute of Internal Audit and Deloitte & Touche LLP accounting firms together tells that financial crisis urge enterprise managers to further enhance attention to internal auditing and modern enter-prises are concerned about enterprises risk increasingly. At present, although our theorists and practitioners research risk-oriented internal auditing from different views, the risk-oriented internal auditing procedures construction is seldom covered.Based on the above problems, the first part of this paper introduces foreign and domestic background of the topic choosing, analyzes the latest domestic and foreign research results of risk-oriented internal auditing, and briefly introduces the research purpose, significance and content. The second part starts with historical evolution of internal auditing, puts forward the risk-oriented internal auditing is the latest mode of internal auditing developing, and offers the definition, objectives and functions of risk-oriented internal auditing on this basis. The third part analyzes the reasons for carrying out risk-oriented internal auditing. The fourth part is mainly about constructing risk-oriented internal auditing procedures. Not only emphasizes that internal auditing staff need to concern analysis and management for audited project risk in the process of project auditing, report phase and follow-up auditing, but also comes up with the idea of hierar-chical decomposition about the risk that the audited program faces in the method of hierarchical analysis in the course of making annual auditing plan, and then rating and grating step by step to attain the general risk value so as to decide the internal auditing annual plan. The fifth part pro-poses to establish risk-oriented internal and external safeguard measures and create favorable conditions for implementing risk-oriented internal auditing procedure.With constructing risk-oriented internal auditing procedure, fundamental theory of risk-oriented internal auditing is expected to be enriched and some guidance and experience and be drawn on by enterprises that adopt risk-oriented internal.