The Improvement In Internal Audit Of The Chinese Enterprise

There are many needs for setting up internal audit system, such as enlarging of the enterprises scale, adding of the management levels, diversifying of the operation areas, complicating of the trust-agency relationship, etc. The internal audit has been playing important role in China since it was renewed in 1983. Supervisors, shareholders, managements and other related-interest parties are making new requirements to it according to the latest changes. The internal audit's functions not only include supervision and evaluation now, but also turn to consultation and assurance.A successful internal audit needs a support of good audit environment, but it also relay on the good services that the internal audit provides to the enterprises. While facing a new development chance, there are many problems in Chinese internal audit, such as the framework setting, the staffs'abilities, audit environment, audit methods, etc. The paper sets forth the basis theory of internal audit firstly, and then analyzes the problems and chances of internal audit, finally provides some advices of perfecting the internal audit in the view of the enterprises.The paper includes three parts. Part 1 set forth the definition, nature, goals and functions of internal audit firstly, and then introduces the abroad internal audit. Part 2 points out the chance and challenge of internal audit in China. Part 3 provides pertinence methods to the problem in Chinese internal audit, especially in the areas of framework, staffs'abilities and audit environment.