Research On The Position Of The Modern Internal Audit Function

Since the foundation of the auditing agency in our country, the organization system of the agency, which covered government audit, internal audit and public audit, has been primarily formed. The different agencies work corporately and focus on different are respectively to adapt themselves to the new audit requirements coming from the multi-ownership economy in our country. Along with the continually developed economy reforming and the generally complicated market environment, current internal audit system has been discovered its weakness and the internal audit function can not meet the needs of the organization which not only restricts internal audit, but also hindered the development of the economy and the deepening of reform. Therefore, establishing the effective internal audit system and clearing the position of the internal audit function becomes so urgent.This thesis used audit science, management science and other modern theories. Surrounding the end purpose of the internal audit–increase in value, we analyzed the development process of the internal audit function. Then it also introduced the latest stage of internal audit - Risk-oriented Internal Audit. On the basis of analyzing the relationship of internal audit and internal control, internal audit and corporate governance, we concluded the latest internal audit functions of risk-oriented internal audit: recognition and counseling. We emphasized that the internal audit in enterprise risk management and governance had the huge added value. Finally, in summing up the status of the internal audit function on the basis of survey data, we analyzed the factors which restricting the development of China's internal audit function and put forward the corresponding improvement measures.Following the principle of combining theory with practice, We combined theoretical research paper with the Haier Group's internal audit practice for a detailed analysis .We introduced the Haier Group's advanced internal audit experience and analyzed Haier Group's internal audit functions and put forward a number of recommendations for improvement.