Research On The Operation Of Internal Audit Of Enterprises

The continual development and innovation of modernistic audit's function havebecame an obvious trend and been common realized in the world. The function ofinternal audit has changed from financial auditing to management-consultation andrisk-management, and plays a crucial role in perfecting enterprise managementconstruction and advancing efficiency of management. However, for years, somefamous enterprises have been muckraked in finance in America, take Enron Corpand MCI Worldcom for example, also there are some scandals in Securities Businessin our country, such as Yinguangxia, Lantian Stock, Zhengbaiwen and so on. All theseshow out the problems in enterprise internal audit, risk-management and managementconstruction. There must be certain distance between the function that internal auditdoes in practice and deepening the realization of the internal audit function by people.How to enhance the evaluating and perfecting on risk-management, controlling, andmanagement procedure by internal audit in enterprise has became a crucial issue inboth theory school and practice school.The main contents of this article as followed. The first chapter, briefly introducesthe background and meaning of choosing this issue, summarizing literatures aboutinternal audit both inside and outside and introducing the frame of this article. Thesecond chapter, based on expatiating the essential concepts and theory of internalaudit, analyzes the relationship that internal control, risk-management and enterprisemanagement with internal audit, emphasizing the important meaning that internalaudit for modern enterprise. The third chapter analyzes the environment factors thatinfiuent operation of internal audit at first, such as the position of the internal audit inan organization, the management of this department, the policy on human resourceand the culture of it and so on. Based on the problems appears on the operationenvironment of the internal audit in our country's enterprises at present, and theproductions from the researches and practice in western countries, author puts forwardseveral measures to optimize the operation of enterprise internal audit in our country.The fourth chapter, based on revealing the defect in the operation pattern of internalaudit in our country's enterprises, combining the current developing trend of internalaudit, author rebuilds a frame of internal audit operation that oriented in risk-management and takes the operation-management audit as the key point, andshows out several correlative and developing methods to meet the new frame. And thefifth chapter, author does research on performance evaluating of the enterpriseinternal audit operation. Analyzing the necessary of this point, and comparing the twomain measures, presently, about performance evaluating of internal audit in theory,author constructs an index system based on the Balanced-Scorecard to evaluate theperformance of internal audit operation.The innovation and characters in this article: (1) Aiming ensuring the efficiencyof intemal audit operation, author researches the environment, pattern andperformance evaluating of it. On the environment issue, analyzing the influence fromorganize setting, department management, policy on human resource and audit culture,points that they are the guarantee on organization, system, manpower and driven. Onthe pattern issue, according to the expanded goals and functions of internal audit,rebuilds a frame not only oriented in risk-management and takes theoperation-management audit as the key point, but also combined service flow audit,management flow audit and risk flow audit as a whole three-dimensional one. On theperformance evaluating issue, from the angle of internal audit's self development,author shows the necessary on evaluating the operation efficiency of internal auditand constructs an index system based on the Balanced-Scorecard to evaluate theperformance of internal audit operation. (2) This article emphasizes on the threeimportant problems of the enterprise internal audit operation, they are not onlysinglehanded issues, but also internal related in logic. To ensure the effectiveoperation of the internal audit, the operation environment is the basis, the operationpattern is the essential, and the performance evaluating is the final weight andimportant method.