Promote The Study Of Our Risk-based Internal Audit

The 21st century is a new century full of challenges and opportunities. In such a diversified and changing environment, the management of enterprises experiences substantial revolutions. As a managerial control mechanism that ensures effective accountability, internal audit has to change with it in order to become an essential part of the value chain and to provide "value-added" service to enterprises. Risk-oriented internal audit is the latest development of internal audit. Internationally speaking, the research on its theories and practical issues is still on preliminary stage, In 2003, the China Institute of Internal Audit issued the first internal audit standards, which is the first step to promote the profession of internal audit in China. Comparing to international researches, the research on internal audit theories and practical issues in China is very weak, which also indicates an extensive space in this area. This paper researches the frontier of internal audit---risk-oriented internal auditing, which is supposed to have theoretical as well as realistic significance. This paper is organized as follows:The first part of this paper is introduction .It mainly discusses the background, research method, structure of this paper, and summary of the previous research. The second part introduces the historical evolution of internal audit and emergence of risk-oriented internal audit. This chapter reviews the historical evolution of internal audit, from germination stage to financial-oriented stage , operational-oriented stage , management-oriented stage and risk-oriented stage. Managerial theories and practices affects the evolution of internal audit substantially and the process reflects the changes in the accountability relationship on which internal audit relies. Chapter Three Basic Theories of Risk-oriented Internal Audit. This chapter dissertates the background and basic theories of risk-oriented internal audit. Chapter Four Describes the issues of the practice of Risk-oriented Internal Audit. Chapter Five Indications of Risk-oriented Internal Audit to the Future of Internal Audit in China. Chapter Six The Risk-oriented Internal Audit be used in EA company. The last two parts integrate theory with practice.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, hoping to provide some help to the application of risk-oriented internal audit in our country.