The Application Of Governance Internal Audit Theory In Prison Enterprises Of X Province

Prison enterprises serve as special and complicated economic entities. With the progress of prison reform, prison enterprises, on the one hand, should adapt to the development of social market economy and thus operate independently and be responsible for their own profits or losses. On the other hand, they have to provide the necessary labor jobs and meet the needs of the prison to rehabilitate the offenders. Against such a complex background, internal audit of the prison enterprises should be of great importance to help supervise and control the enterprises operating activity, but due to its less independence and inefficiency now, internal audit can hardly fulfill the exact role in the management of prison enterprises. The research of this article is based on the internal audit of prison enterprise in a province, and attempts have been made to explore the application of governance internal audit theory in this enterprise.Based on the research of governance internal audit theory, a series of analysis and summary have been made concerning the problems of internal audit of the prison’s enterprise. There are many things to do to push forward the reform of internal audit of the prison enterprise. Firstly, we should confirm that the function of internal audit is supervision, control, evaluation and consulting, and achieve the changes from internal audit function to internal audit governance. Secondly, we should expand the scope of internal audit of the prison enterprise. According to the needs of management of the prison enterprise, we should perfect the economic responsibility of audit in the enterprise, strengthen the internal control audit and involve the internal audit in the comprehensive risk management of the prison enterprise. Thirdly, in order to achieve the reform and apply it to the practice, we need to treat it with scientific methods, and thus we should change the organization of internal audit, perfect the internal audit techniques and methods and improve professional competence of internal audit staff.