Construction And Implement Of Risk-oriented Internal Audit Procedures

In August2007, the U.S. subprime mortgage crisis erupted and quickly swept the financial markets in the United States, Japan,the EU and other countries. Merrill Lynch&Co. was acquired by Bank of America Corp. for roughly$44billion. Lehman Brothers went bust. Bear, the nation’s fifth largest investment bank was near collapse. Of the five major investment banks that walked the earth little over half a year ago, only two survive Goldman and Morgan Stanley. The five big investment banks were known for perfect risk management. But now three of them have been closed down or acquired. People can not but ask, does the risk management have played positive role in high risk enterprise?Not come singly but in pairs, with the spread of global financial crisis, The melamine event case shocking all the country. The dairy leading enterprise Three Deer group was faced with bankruptcy. As some denounce irregularity dealing and immoral business behavior, the research on the risk management, such as the quality risk and legal risk, is coming into the focus. Our enterprises have taken active part in the process of economic globalization and marketization, facing with the increasingly fierce market competition and more and more complicated operating risk. how to put forward the effective risk management mode to reduce the risk as much as possible, has become a key problem that we have to face and solve.Based on the above problems, this paper focuses on how to make full use of the value appreciation function risk-oriented internal auditing to insure risk management goal can come true. Firstly, this paper analyzes foreign and domestic research results of risk-oriented internal auditing, reviews the development history of internal auditing and briefly introduce the nature、objective、goal and functions of risk-oriented internal auditing. The second part starts with the definition of risk management, ERM, corporate governance and internal control, and analyzes the relationship between risk-oriented internal auditing, ERM, corporate governance and internal control. The third part, constructs the risk-oriented internal auditing framework and discussed the work to be done in view of the four phases of the auditing, which is audit preparation, on-site audit, the audit report and follow-up. Finally, the paper introduces the general development of internal audit in our country and analyzes the existing problems as well as makes some proposals.