A Study On The Value-Added Internal Audit In Our Country’s State-Owned Enterprises

With the economic globalization and the increasingly complex domestic and international economic environment,enterprises are facing increasing operating risks,in order to cope with risks and to gain an advantage in the fierce competition,many enterprises have to abandon the redundancy departments to strengthen the management of the value chain.Internal audit as one part of the the value chain,has a very important position in enterprise management.lt is not only an important part of the enterprise internal control system,but also the primary means of supervision and evaluation of internal control.According to the audit. results announcement of the nearly three years published by the National. Audit,shows that state-owned enterprises generally exposed many problems such as spamming employee benefits,the management decision-making mistakes,nonstandard internal management and so on.These issues directly or indirectly reflect the corporate governance of state-owned enterprises are not perfect,and the internal audit function is missing.Internal audit should adapt the changing economic environment,must be implemented the transformation of value-added internal audit.Therefore,the study on the application of value-added internal audit in our country’s state-owned enterprises is very important in theoretical and practical significance.First of all,this paper begins with the background and definition of value-added internal audit and analyzes theoretical basis related to it progressively.On the basis of this,combined with the nature of the state-owned enterprises,this paper defines the state-owned enterprises’ value-added internal audit as an advanced audit concept in the specific application of these enterprises,the internal audit departments need to cut and reduce costs,use its special status,resources and methods to increase the effectiveness of the internal audit,then through the systematization and standardization of the methods to evaluate and improve the use of its unique function in the state-owned enterprises,implement national policy,construction of the systems,internal controls and other aspects of the efficiency of the organization in order to realize, the value of appreciation of the organization.Secondly,this article analyzes the status of internal audit in the current value-added of state-owned enterprises,points out the existing problems,and focus on the causes of the problems combined with the related theories.This paper is based on reading lots of references,studying lots of survey reports of China Institute of Internal Audit and audit results announcement released by the National Audit Office.The article analysis the current situation of the value-added in state-owned enterprises,mainly embodied in the less advanced internal audit technology and methods,narrow internal audit scope,non-standard financial management and the internal management and so on.The causes of these problems is mainly reflected in:the backwardness of internal Audit methods,the lack of audit concept in value chain,the incomplete performance appraisal system,the imperfect wage budget system,and the imperfect internal control system of state-owned enterprises.In the view of the current situation of the value-added internal audit in state-owned enterprises and its causes,this article focus on value-added in the operation and management of state-owned enterprises targeted at reducing losses and waste,and on this basis to improve the operation and management of state-owned enterprises,in order to highlight research priorities,this article does not relate to other existing problems of internal audit in state-owned enterprises and other value-added areas of internal audit.Again,combined with the concrete situation in our country,this paper analyses the successful application of of value-added internal audit in Daya Bay Nuclear Power,researches the use of value-added internal audit,and the effectiveness of increasing the company value. Starting from the actual conditions in our country,this paper summarizes the following application of experience enlightenment:to set up the value-added concept of internal audit,to establish a proper mechanism of value-added internal audit,to build a perfect quality control system of value-added internal audit,to expand the work areas of internal audit as well as configuration of advanced audit methods and techniques.Finally,this article discusses the implement condition,path of the value-added internal audit in our country’s state-owned enterprise,and the evaluation of the role of the value-added internal audit,in order to improve the value of internal audit in state-owned enterprises effectively.First,this paper analyzes the conditions needed to improve to add value of internal audit in the state-owned enterprises from the working conditions of internal audit,the organization orientation of internal audit and the benefits and costs of internal audit; Second,this paper respectively expounds the paths of our country’s state-owned enterprises to carry out the value-added internal audit choice from the establishment of effective internal audit institutions,the innovation of internal audit methods and techniques,accurately grasping the content of the internal audit,improving the performance evaluation system of state-owned enterprises and the implementation of total wages budget management and so on;Thirdly,this article evaluates the value-added results on the base of drawing on the basic principles of Economic Value Added and constructing the performance evaluation model. This paper applies the advanced ideas of value-added internal audit to the state-owned enterprises in our country,combined with the nature of these enterprises,it puts forward the basic ideas to develop the value-added internal audit.This article is expected to provide valuable reference in the application of value-added internal audit in state-owned enterprises,to inspire more companies and individuals to research on the issues of internal audit,and to make the value-added internal audit get efficient development in our country’s state-owned enterprises.