The Application Of Continuous Auditing In Internal Audit

During the process of growing bigger and stronger, anenterprise would establish a sound internal control system and exercise effective internal management and as a result, audit has been playing a prominent and essential role. In2006, the Comprehensive Risk Management Guidance for Central Enterprise was issued by the SASAC(State-owned Assets Supervision and Administration Commission),which makes internal control become part of essential work for large and medium-sized state-owned enterprises. However, it differs when applying in practical work for a variety of reasons:1.Government-ledpattern and lacks of motivation for further development.2.Monotonous contents of auditing and unsound norms.3.Variance of quality of internal auditors and audit techniques, resulting from insufficient attention of management.Take Chinese postal enterprises—the most traditional and typical state-owned enterprises for example To successfully transform to an modern-management enterprises, great attention need to be paid to internal audit and solve problems such as improper and administrative position of internal control, unreasonable allocation of audit organization and staffs, singleness of audit duty and authority, backwardness of audit procedure, method and quality, etc.Under the background mentioned above, we use continuous auditing techniques and approaches toanalyses the present situation of internal audit in postal enterprise and puts forward some audit proposals on strengthening the modern internal management including:1.transform the single post auditing to a combination of interim and post auditing by identifying the application of continuous auditing in postal enterprise.2.transform the static auditing to a combination of static and dynamic auditing by establish data model for comparative analysis between postal enterprises.3. transform the fixed on-site auditing to a combination of on-site and remote auditing based on IT by improving information processes for continuous auditing. In conclusion, postal enterprises should take steps to improve their continuous auditing system and contents and enhance audit quality with the purpose of increasing economic efficiency and coping with potential risks.