Internal Audit Problems In Corporate Governance

In recent years, with the accounting scandal of domestic and overseas has been occurring, all over the society give unparalleled attention to financial information of frauds. In order to improving the level of companies' corporate governance, the new corporate governance standard in the United States requests all the listed companies must establish the internal audit department. The audit committee under the board of directors of the listed company is also requested to establish in our country, managing the external independent audit and internal audit work. The important function of internal audit in corporate governance has acquired extensive common understanding. Comparing with abroad , the internal audit work in listed companies in our country currently is still weak. So study on the internal audit problems is helpful to improve on internal audit work, to strengthen corporate governance and to improve operation performance for listed companies in our country.The paper mention on the derivation, influence, and debate of the Sarbanes-Oxley. Briefly introducing Internal Control-Integrated Framework which is issued by COSO. Reviewing the agency theory, corporate governance theory and internal control theory. According to these theories, we know the development motive of internal audit. The internal audit department plays a significant role in corporate governance as an important part of internal control system.This paper emphasize the internal audit produced by internal demands. Considering the internal audit work in FZ group as gateway; describing the basic framework of internal audit and developing and perfecting the direction of internal audit on FZ Group; pointing out all the principal problems of internal audit work. These problems include: It's still based on the financial audit, not achieved transforming to the management audit, The owners and managers think the internal auditor as a supervisor only; internal auditors attach importance to superficial supervise fraud, cannot handle behaviors of breaking the law and the rules that they have founded, internal auditors are hard to provide more value added services to management. The internal audit operation still following the operating mode of the external audit. This paper analyzes above problems existed in FZ group. The causes include, the management relation of internal audit is not so good because of the separation of top management duties and the audit department not working; The internal audit resources is shortage. The audit quantity guaranteed system is lacked.The essay educe that facing the fast change of enterprise external environment, the internal audit of enterprise must give a new localization and understand. According to the development of enterprise, auditing function need transform. By means of expanding internal audit field and improving internal audit technology, internal audit value is promoted. The essay also put forward as follows suggestion: strengthen to develop the audit committee under the board of directors; Integrate the audit resources and establish the triple-grade audit system; Establish the audit quantity guaranteed system; Attach importance to the follow-up audit; Strengthen to cooperate with the external independent auditors; Strengthen to communicate with the management, provide more value added services.