Research On The Internal Audit System Of Tobacco Company In Jiangsu Province

The State Council decided to strength the supervision of state-owned assets in1993. According to relevant provisions published by the State Council over that year, China National Tobacco Corporation (CNTC) oversees the operation and management of state capital owned by its affiliated enterprises. However, due to the limitations of reforms of the year, the State Council only affirms supervisors of assets in the tobacco industry rather than clearly identifies investing representatives of state-owned assets in the tobacco industry, functions of enterprise’ investors are not explicit and the system of asset management in the industry is not specific, which is disadvantage to build the modern property-ownership and enterprise system for the tobacco industry. Therefore, the General Office of the State Council issues the No.57document to prescribe CNTC that can execute the investing power for its business enterprise’s state-owned assets, doing the operation and management of those state-owned assets. And the Ministry of Finance supervises CNTC s state-owned assets. So this is a significant breakthrough to reforms of supervision and management for state-owned assets in the tobacco industry in China and an important symbol for entering into a new stage. Moreover, after the reformation, CNTC will be in accordance with the principle referring to "unifying the power, obligation and responsibility, the combination of assets management, governing people and conducting arrangement," particularly, carrying out investors’responsibility as prescribed by laws. Concretely, the Ministry of Finance establishes the supervising management measures of state-owned assets for the tobacco industry, further strengthening the supervision of state-owned assets in the tobacco industry. The effective combination form of internal supervision represented by investors and external supervision on behalf of the Ministry of Finance is in favor for transition the post-supervision into the process-monitoring, is advantage to establish the perfect accountability system of important decision-making mistakes and major asset losses. Furthermore, building the law-risk aversion mechanism for state-owned enterprises is to the benefit of strengthening its financial supervision, setting up and perfecting the working system of investors’financial supervision as well.With the continuously reform system of Mother-Daughter Company in the tobacco industry, perfect the corporate governance structure, strengthen the inspection of provincial company against city level company, enhance the right to know, supervise, participate and safeguard owners’and operators’equity, the overall interests for the provincial company that as a parent company, construct the adaptable internal auditing supervision pattern under the system of Mother-Daughter Company, shape the resultant force, effective and multi-level monitoring system is obviously significant. Pursue the audit accreditation system is a kind of auditing working mechanism to build the vertical management, which can integrate with resources of auditing, highlighting key points to audit, effective implement the auditing supervision, regularize behaviors for the production and business, prevent enterprises go against the operational risk and raise the internal auditing supervision level. All these can better achieve the maintenance and appreciation of state-owned assets. Consequently, after the audit accreditation system effectuation, those personnel who are accredited belong to the provincial company in the business, nevertheless, at the same time, the wages and personal connection belongs to the city level company. People who are accredited may potentially become the marginalization, even showing phenomenon that both of two companies will neglect the management for them. Thus, their promotion channels will be not very smooth, working initiative and emotions will be also not very high.This essay combines with its own practical development conditions of Jiangsu tobacco considering perspectives from existence problems in the audit accreditation system implementation working to carry on a thorough research. Having a discussion around that how to solve practical problems in the audit accreditation system effectuation and adequately develop the supervision and service functions of internal audit accreditation, guaranteeing effects for the audit accreditation system implementation.