Research On Risk-oriented Internal Audit

The 21st century is a new century full of challenges and opportunities. In such a diversified and changing environment, the management of enterprises experiences substantial revolutions. As a managerial control mechanism that ensures effective accountability, internal audit has to change with it in order to become an essential part of the value chain and to provide "value-added" service to enterprises. The internal and external environment of enterprise and requirements of management perfectly consistent with the features of risk-oriented internal audit, which made risk-oriented internal audit become the developing direction of modern internal audit. However, the risk-oriented internal audit in China is still in its preliminary stage. As to this new method of internal audit, how should we treat it? And how should we use it in practice? This paper focuses on these issues. It is organized as follow:The first part of this paper is introduction. It mainly discusses the background, research method, structure of this paper, and summary of the previous research.The second part introduces the historical evolution of internal audit and emergence of risk-oriented internal audit. From the developing history of internal audit, we can see that the changes of external economic environment and internal management requirements made internal audit developed. And risk-oriented internal audit is just the result of this development. This part also describes the connotation of risk-oriented internal audit, including its meaning, characteristics and theoretical basis.The third part discusses the basic theoretical framework of risk-oriented internal audit, including its essence, object, goal and responsibility.The fourth part describes issues of the practice of risk-oriented internal audit in our country. These issues include the status, process, requirements for enterprise and internal auditors, and also some recommendations to risk-oriented internal audit.In the fifth part we choose the commercial banks in our country as example to explain how to use risk-oriented internal audit in the practice.The sixth part summarizes the whole research. In this paper, we made a complete and systematic research of the theory and practice of risk-oriented internal audit. Through the study we can see that the risk-oriented internal audit can provide enterprises with more "value-added" service, and it is the developing direction of modern internal audit.