JST Company's Internal Audit: Existing Problems,Potential Challenges And Improvements

JST is a regional telecommunications company, and successfully completed its initial public offering (IPO) overseas in 2002. Since then, the company insists on the core concept of value, which is"Comprehensive Innovation, Pragmatic Execution, People-centered Approach, Value-added Cooperation Innovation", and erects the entirely new concept of business operations. Facing the intense competition in the telecommunications market, the company pushes forward to transform from a traditional basic telecom network operator into a modernized integrated information service provider. In order to realize the transformation, the company works hard to implement exact management and optimal utilization of the corporation resources. So far, JST has built a public communication network covering the whole province, which is technically modern, highly efficient and safe. Basically, various kinds of demands for telecommunications from the society can thus be met.The interior audit of the company also plays an important role in both development and exact management of the corporation. Now, the work of financial audit, engineering audit, and economic responsibility audit, as well as the audit investigation takes an important part in strengthening the corporation management and enhancing the economic efficiency. The achievements of the interior audit in JST have been granted by the managerial layer of the company. On the other hand, however, with the constant adjustment of managerial system and mechanism of the company, some problems of interior audit appear gradually. These problems, such as the vagueness of positioning for the interior audit, narrow area of audit, lack of people working for the audit, and leader's imperfect understanding of the audit, affect the further exertion of the interior audit. With the advancement of the BPR, central management and corporation information of the company, new challenges will be encountered in the interior audit.Starting from the basic theory of the interior audit and combining the JST's practice, we analyze the current situation of JST interior audit, the existing problems and challenges faced in this paper. Meanwhile, in this paper a series of schemes and measures to be taken for improving the interior audit are proposed in aspects of relocation of interior audit, reorganizing resources, widening the scope, creating new means, and enhancing the quality, etc. We expect the work done in this paper is helpful for the development of the interior audit in the company, and furthermore, for the development of the company in the future. Also, we hope that this paper is helpful for the interior audit in the other enterprises.This paper is organized as follows. In Chapter 1, the situations of the interior audit in JST are introduced in general. The problems existing in the interior audit of this company are raised in Chapter 2. Challenges faced in the interior audit under the new circumstance are analyzed in Chapter 3. Finally, some schemes and measures for improving the interior audit are proposed, and conclusions are drawn in Chapter 4.