Risk-based Internal Audit In The Application Of Electric Power Enterprises

With the escalation of modern enterprises, the unprecedented scale of transformation and expansion of business, scientific management, strict corporate governance an important position that will directly determine the efficiency of enterprises and the rise and fall. In this situation, in addition to receiving the State’s special audit oversight functions, the conscious awareness of a real-time enterprise risk-oriented transformation of internal audit has been fully recognized and fully strengthened. It is in such demand their own existence, the paper fully demonstrate the main body of the internal audit of internal control based organizations, while focusing on corporate governance, including consideration to the overall risk of an audit organization’s audit of the center of gravity-the potential risk based internal audit should The importance of hygiene.Full paper describes an internal audit functions as a business, of course, enterprise risk management become an integral part of effective implementation of risk-based internal audit, from a professional point of view to assess and reduce risk.Papers vivid reality from the power companies power businesses discussed the internal audit risk-based transformation is to implement the concrete manifestation of the scientific development concept is based on changes in the functions of our government, enterprises need to transition mechanisms. Comprehensive risk-based internal audit is also a good grasp of the power companies to achieve the "four modernizations" operation and implementation of the "second word" necessary requirement for the principle of "four modernizations" that group operation, intensive development, and meticulous management, standardization. Company "second word" principle is "safety, harmony, efficiency, effectiveness, rule of law, service." We need to improve auditing of these ideas, in-depth grasp risk-based internal audit, and promote enterprises to avoid the risk of development of production and ensure supply, and enhance efficiency, increase our strength.This paper is a preliminary risk-based audit of the internal, but also on risk-based audit of internal audit of this new model a more comprehensive elaboration. This paper generated from the risk-based internal audit environment, the basic definition of its enterprise risk management processes need to seize the key elements of the audit were discussed. Power companies with industry characteristics, operating environment and business processes to help companies plan ahead as a preventive measure, to deepen the risk management mechanisms to promote stable and healthy development. This paper is divided into four parts.The research method is reflected in:First, case analysis. Electricity use by the internal audit risk-based analysis of the case to explore the risk-based internal audit in the application of power enterprises. Second, the literature review method. The normative thesis is to study the process of writing the paper, the full study and digest the literature of modern information and library network resources, such as "China Academic Journal", "China’s outstanding master’s degree thesis text database", "Chinese Doctor Dissertation Full Text Database", and some previous research point of view, working in conjunction with their professional practice and knowledge learned to write papers. Third, charts and flow analysis. Full Text via diagrams and flow charts, more directly reflect the intention of writing this article, people at a glance.This article mainly consists of six chapters:The first chapter is an introduction section. General introduction to this paper, the background and significance, summary description of the risk based internal audit review of the literature at home and abroad, development and research.The second chapter is part of the theoretical basis and detailed describes the basic theory of risk-based internal audit, risk based internal audit background of the times, the risk-oriented content and characteristics of internal audit, risk-based internal audit implementation of the framework.Chapter Three industry characteristics with power companies and business characteristics, internal and external environment analysis, risk-based internal audit described in the Application of power enterprises. The fourth chapter analyzes the risk-based internal audit internal audit practice in case of power concrete applications, including power companies around the goal of a comprehensive risk identification, comprehensive enterprise-wide various types of risk, determine the audit priorities. Secondly, through the "planning phase-implementation phase-the end stage-follow-up audit phase" of the implementation of power marketing program of the specific implementation of the audit to explore the risk-based internal audit in our application of the road.Chapter V power from the internal audit in recent years, the status of self-building, discussed the new situation to perform well against the risk to the important task of the audit, the auditor independence needs to be strengthened, the audit technology is relatively backward urgent need of updating, professional quality internal audit staff need to be improved, be further expanded the scope of internal audit, a detailed analysis from the four aspects of the power of internal audit risk-based enterprise application problems, an improved view.Chapter VI is a summary of the full text of power enterprises to promote the use of risk-based internal audit recommendations. First, leadership attention is to improve the risk-based internal audit of the security; second is to ensure the independence of the internal audit agency and authority, is to improve the basis for risk-based internal audit; third is to establish a complete sound system of legal norms, as risk-based internal audit procedures to establish laws and regulations; fourth is to improve the professional structure of the internal audit staff to adapt to the development of risk-based internal audit; five characteristics of a combination of the power industry and expand the scope of audit work; six speed up the audit of information technology, and promote risk-based Application of internal audit.The main contribution of this paper are:(1) The point of innovation. This audit work from the reality of power enterprises, risk-based internal audit described the causes of, risk-oriented content and characteristics of internal audit, risk-based internal audit implementation of the framework. The power enterprises in the background of the risk-based internal audit research, explore a new research point of view, has a positive meaning and valuable practical research value. (2) innovative research methods. Risk-based internal audit for the research literature, just from the more theoretical research articles, based on combining theory and practical case studies of small articles, especially articles in the power of the enterprise less. In this paper, an instance of power demonstrated enterprise marketing risk-based audit of internal audit in enterprise risk management in power never before played the role of the audit to obtain good results, and promote enterprises to improve management, increase economic efficiency.The main deficiencies are:due to the current risk-based internal audit in China’s power companies are exploring the application stage, complete with quantitative analysis of historical data is not yet ready. Only in the risk-based internal audit in the power business for a trial period before we can accumulate some experience data for theoretical studies theorists to provide more support.