Exploration On Some Issues About The Value-added Internal Audit

Having passed through two stages when taking fraud prevention and effectiveness promotion as its target separately, the internal audit made add value as its goal at the end of 20'Th century largely because of the competition pressure coming from the external audit and joined the movement of corporate governance. Thus, with the common goal of improving corporate governance, a close relationship has formed between risk management and internal audit on the base of interaction, for the reason of decreasing the transaction cost and getting the higher position in the enterprise's value-chain as well.In 1999, the Institute of Internal Auditors (IIA) defined that: internal auditing 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. This was the first time that "add value to the organization" was written in the definition of internal audit. The value-added internal audit is not a pure academic concept, but a new practice concept developed in modern enterprise management, which is facing more risk, greater change in corporate governance and strategic recombination.Normative approach is used to research on this thesis. Firstly, several basic concepts are discussed, including assurance and consulting services. Secondly, analysis the relationship and the role of internal audit between risk management and corporate governance. Thirdly, make the "managing the internal function" as an independent part, staffing and total quality management are two of thesis which is researched. Finally, several suggestions are mentioned, in the hope of introducing value-added idea to Chinese auditors, and facilitating value-added auditing applying in Chinese internal audit practice widely.