Research On Internal Audit Risk Control Of State - Owned Enterprises In China

With the increasing status of state-owned enterprises in national economy, the state-owned enterprises’social responsibility and corporate responsibility is more and more concerned by the society. Complex internal audit object and the expansion of audit content augment the risk of internal audit in state-owned enterprises gradually. At the same time,our state-owned enterprises have their weakness because of the development constraints, its own characteristics and financial environment of the whole world.The enterprises should have an effective risk control mechanism in order to achieve the established business objectives,and internal audit should play a role of supervision and guarantee that whether the enterprises have established a program of risk prevention and control,and whether the program runs good. How to effectively control the risk of internal audit in state-owned enterprises and improve the audit quality have become an urgent problem to solve.This paper is to reveals the evolution of the internal audit concepts and the necessity of the development of the state-owned enterprises internal audit and then studies the types and characteristics of the internal audit risk of state-owned enterprises and the concept of internal control.Find out the main reasons that form the internal audit risk through the characteristics’and the types’research of the internal audit risk to provide a theoretical basis for the prevention of audit risk in our state-owned enterprises,including the problem of internal audit mechanism, internal control environment and internal audit execution.Based on the analysis of the internal audit risk of state-owned enterprise case,this paper puts forward the control and prevention measures of the internal audit risk in enterprises,which contain optimizing the environment of internal audit and ensuring its independent status, expanding the scope of the enterprises’internal audit supervision and perfecting the audit papers of internal control,establishing the security and supervision mechanism of internal audit,and standardizing the procedures of internal audit,absorbing advanced foreign experience, exploring new mode and method of the internal audit as well as outsourcing internal audit work or exchanging it with the same trade.Through the above research, this study intends to provide practical experience for reference to prevent and control the internal audit risk for the management of the state-owned enterprise in our country.