Construction Of Risk-oriented Internal Audit Of Zoomlion

The U.S. subprime mortgage crisis occurred in2007. In2008it becameincreasingly intense and gradually evolved into a comprehensive U.S. financialcrisis, even the global financial crisis. At the same time, the crisis penetrated intothe real economy from the financial sector, especially in the second half of2008,the major developed economies as well as China’s economic decline d at analarming rate. The great transformation of the economic situation has broughtunprecedented challenges to Chinese enterprises. By survival, delisting warning,manager self-promotion incentives interests factors, companies often sword easyroad, trying to turn things around by fraud. However, the famous Enron andWorldCom scandals have proven that to achieve the economic goals by fraud isfolly. As companies began to find how to operate more efficiently and respond tocomplex regulatory requirements, in the current difficult economic environment,internal audit became more important than ever before. Internal audit as one of thefour cornerstones of corporate governance has beco me an important part of internalcontrol, to provide support for enterprises with on the right track.Zoomlion is the world’s largest concrete and lifting machinery manufacturingcompanies and the first A+H shares listed companies of China ConstructionMachinery. This paper started from the meaning of risk and comprehensive riskmanagement, elaborated the definition and the development process of internalaudit, then it proposed to build the internal audit system based on six elements ofrisk management. As guidance, this paper analyzed internal audit system ofZoomlion and the existing problems, then give the corresponding improvementcountermeasures to help Zoomlion to further improve the internal audit system, tomake internal audit an important role in the risk management, and to meet therequirements of the management.