Study On The Construction Of Value-added Internal Audit In H Company

In July1999, IIA enacted the fifth definition of internal audit. That is:"Internal audit is an independent, objective assurance and consulting activity designed to add value and improve organizational operations." This definition has expanded the internal audit functions from the previous inspection and supervision activities to the value-added activities, through which the internal audit creates value for shareholders and the other stakeholders. The value-added internal audit is an audit concept and also is the new trend of development of internal audit. Such value-added internal audit is not purely theoretical research results, but a new internal audit which due to modern business increased risk, corporate governance structure changes, the strategic reorganization of internal organization and many other reasons.As the electric power system reforms are deepened in recent years, electric power enterprises’ management level increases unceasingly with the management span enlarging unceasingly, they are facing growing operating risks, furthermore various legal people enterprises require to establish and improve modern enterprise system and effective company governance structure, the internal audit is the important form of supervision which enterprises have had higher demand for objectively. So how to change the service way, satisfy enterprises’needs and increase the value of enterprises have become the problems that they must be concerned.Firstly, this paper describes the connotation, the function, the realization and the evaluation methods of the value-added internal audit.Then the internal audit agencies of a specific State-owned power enterprises was analyzed in the development status and the difficulties, based on results of theory research, proposed measures to improve the company’s internal audit with methods of case study. From functions to the position of audit institutions to the specific improvement measures, The thesis analyzed totally the existing problems of internal audit and provide advice.