The Study Of Internal Audit Activity's Role In Enterprise's Risk Management

Enterprise, as the main player in the market competition, the risks exist objectively during its operation.With the fast development of market economy, our country begins to realize the integration with international economy. Domestic market and international market will combine together, the market, finance and economic globalization will expand, so the enterprise have to face more and more uncertainties and the incomplete and unsymmetry of information, all of these make the enterprise risks level higher. So the primary problems that the administrators care is how to take precautions against various risks and how to grow in a healthy way.Internal audit is the right effective way for enterprise risks management, with the setting-up and development of modern enterprise system of our country, the role of internal audit has been strengthened constantly. Under the environment of present socialist market economy, the competition is prone to be orderly, keen competition makes the enterprise face the predicament, the administrators have to enhance the internal management level to get profit, and must pay close attention to the risks and control them.Just as the definition we know: "Internal Audit is an independent, objective assurance and consulting activity designed to add value and improve an organization's operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes." On the one hand, internal audit can check mistakes and defend frauds to reduce loss; On the other hand, it can offer consultation to evade enterprise's risks actively, and enhance the comprehensive economic benefits.