Research Of ABC Tobacco Company Internal Audit Problems

With a series of worldwide financial scandals, internal audit problem becomes the focus of world. At present our country is in a key period of further improve, consolidate in the modern enterprise system and corporate governance structure, in this period strengthen the construction of internal auditing is imperative. Especially for monopoly industry like tobacco, which is legal in the country. Although the speed of innovation, integration and reform is increase, the system of parent company , provincial company and municipal company commercial system is gradually establish, but it still a planned economy system, functions transform is still lags behind, many problems are still exist in the internal audit. To strengthen the construction of internal audit system is significance to promote the tobacco industry enterprise governance and improving the management level and the economic benefit.The principal-agent theory, accountability theory, corporate governance and internal control theory provide important theoretical basis for the internal audit of the tobacco industry. Long-term since, the internal audit is concerned by the scholars domestic and overseas, but the theory of our country is still in the stage of introduce and import the theory of the Western countries, combine the development of China's economy and enterprises, the set of internal audit institution which fit Chinese national conditions , the expand of function, the expansion of the content is still lack of innovation. There are many achievement of internal audit in domestic literature, but for the tobacco industry, especially the tobacco commercial enterprise internal audit is rare, and the existing literature also mainly analyses the problems of tobacco enterprise internal audit and countermeasures, which is lack of the deep reasons.The internal audit practice in the tobacco industry of our country has achieved quite great progress, while problems also exist. ABC Tobacco Company is a city tobacco company, which at the commercial segment. And it is also the biggest city tobacco company in the province. The ABC Tobacco Company is a wholly-owned company of the province tobacco company. In the past five years when the company used the Audit System, there is only one professional internal auditor, and he works with the supervision department. The mean responsibility of the audit business is the financial expenditure and revenues auditing, and taking the subordinate companies economical responsibility auditing. The auditing skills of this company are also to fail to keep up a pace. The internal audit work is so weak, and the internal auditing system is but a empty shell. The reasons which cause the present condition are not only the responsibility of the low ability of internal auditor, and the staffers and managers` non-familiar about the internal audit but also the absence of the investment of the tobacco industry, and the structure errors of the corporate management. This paper aims at the reasons and the problems which occurred in the internal audit of ABC tobacco companies. Changes of the internal audit function, implementation and improvement of the audit Appointment System, innovative techniques, expand business, promote professional team building and improve the understanding of the work of internal audit and other recommendations are proposed in this paper. I hope this research can provide ideas and information to the ABC tobacco company for its improvement of internal audit system, and I also hope that it can provide reference to the improvement of the tobacco industry internal audit system.