A Study Of The Application Of Risk Oriented Internal Audit In China

With globalization of economy, severer competition and modernization of technology, it is very important for internal audit organization to employ risk-oriented internal audit, not only for its own development but also for the survival of enterprises in the complex competition environment. As a modern audit method, the risk-oriented internal audit has applied broadly and developed unceasingly. However, internal audit practice has only been on the stage of a mechanism-oriented audit method in our country. The academy just proposed the concept of risk-oriented internal audit and has researched in this field very superficially. There is no systematic and theoretic research achievement about risk-oriented internal audit. Therefore, researching on the application of risk-oriented internal audit in our country has more important theory significance and the realistic value to China's internal audit construction.Through the analysis of the present situation of internal audit in our country, this article elaborated the necessity of risk-oriented audit in our country's internal audit and constructed procedures of risk-oriented internal audit emphatically, hoping to provide some help to the application of risk-oriented internal audit in our country. Through the research, this article mainly completed following innovations: (1)By comparing risk-oriented external audit and system-oriented internal audit with risk-oriented internal audit, the author obtained the eight characteristics of risk-oriented internal audit. The article also discussed the necessity of application of risk-oriented internal audit pattern in China by describing its present situation and analyzing its reasons. (2)The paper constructed procedures in risk-oriented internal audit systematically. It emphasized that auditors had to pay attention to the analysis and management of risks in the audited unit. In addition, in the process of constructing the risk-oriented internal audit program, it was important to utilize the level analytic method to divide the risk in enterprise's audit project into groups. Finally people could obtain the total score points of each audit project and determine the annual plan of internal audit.