Research On Risk-Oriented Internal Audit Of Chinese Enterprises

With the globalization of economy and diversified,enterprise survival environment not only by its economic effects,and international economic and political will,a major impact on its enterprise facing more and more of the inner and outer risks.If no deal risk the key factors,the enterprise will be difficult in the complex environment for survival and development.For example,Lehman Brothers Holdings Inc.,the top investment bank in the U.S.with158years of history,which finally went down during the worldwide subprime mortgage crisis.Lehman Brothers Holding Inc.had been proud of its perfect risk management system.However,looking back on its bankruptcy,people may wonder how much on earth its risk management works for the high-risky business and who should supervise and evaluate enterprises’risk management activities.Almost at the same time when Lehman Brothers announced its bankruptcy,China’s Sanlu milk scandal was disclosed,which stunned the whole nation and brought great strike to the entire Chinese dairy industry.The52-year-old Sanlu Group,one of the leading enterprises in Chinese dairy industry,whose milk powder sales has been listed No.1for consecutive11years and liquid milk ranks No.4in china,was facing with the bankruptcy too.The manufacturers and the sellers involved in the scandal are criticized, and extensive discuss and research are made on enterprise management on strategic risk,value risk,quality risk and legal risk.All these require the enterprise risk management,combined with the internal audit risk for enterprises to provide more effective value of services.The international association of internal audit forward risk-oriented audit on the latest definition,countries also began to research the internal audit mode,foreign enterprise will be applied to the advanced mode,and enterprise practice risk-oriented audit in theory and practice are obtained very big development.However the risk-oriented audit in China is still at the beginning stage,most companies are still using financial guidance system basis of internal audit and the internal audit,the circle at present only put forward the concept of risk-oriented audit,the advanced idea and not in practice enough attention,also caused no risk-oriented audit on the systematic theory research,in order to promote the risk-oriented audit the advanced enterprise application system in China,and finally realize localization.Therefore,this article bases on the risk-oriented audit at home and abroad,analyzes the existing situation of risk-oriented internal audit of our country enterprise,reveals the existing problems and its reasons,and uses the successful experience of risk-oriented internal audit of foreign enterprise for reference,puts forward measures of perfecting risk-oriented internal audit of our country business enterprise.Suggestions of risk-oriented internal audit in our country enterprise application of how to have the certain reference value.This article introduces accountability theory,strategic management theory, enterprise reengineering,risk management theory,as the theoretical support,pointed out the problems and their causes about risk-oriented internal audit in our country enterprise.And it also puts forward measures to improve the risk-oriented internal audit in our country enterprise.The article includes six parts:The first part mainly discusses the background and significance of the study,literature review,research methods and ideas,and etc.The second part mentions relevant theories outlined of risk-oriented internal audit,includes the nature and feature of risk-oriented internal audit,the objective and object of risk-oriented internal audit,the function of risk-oriented internal audit,the procedure of risk-oriented internal audit.It also mentions the significance of risk-oriented internal audit.The third part comes up with existing problems of risk-oriented internal audit of Chinese enterprises,includes lack guarantee of internal accountability, lack strategy of risk-oriented internal audit, failed operation of risk management mechanism,poor assessment and quantification of risk,unreasonable knowledge structure of internal auditors.The fourth part, it analyzes causes problems in risk-oriented internal audit of Chinese enterprises.The fifth part, from analyzing experience of risk-oriented internal audit of American enterprises,experience of risk-oriented internal audit of British enterprises, experience of risk-oriented internal audit of German enterprises,we gain inspiration of risk-oriented internal audit of foreign enterprises,includes strengthen service functions of internal audit,turn into economic benefit audit,set up the appropriate audit institution,Increase the proportion of complex internal auditor talents.The sixth part,we should improve the risk-oriented internal audit of Chinese enterprises,includes improvement of the environment of risk-oriented internal audit,perfect the strategic planning of risk-oriented internal audit,construct an effective risk management mechanism,improve systems of information and technology of risk-oriented internal audit,improve personnel abilities of risk-oriented internal auditor.