Internal Audit Defection Case Study Of SR Company

With the development of China’s capital market and increasingly sound, many private enterprises to enter the three new board and its efforts to improve internal control and rectification becomes essential. The owner is no longer fully effective direct management of the company has become a trend, and gradually dispersed to the management of some of the hands of executives employed in the information asymmetry increased demand for internal audit and more intense. There are many private enterprises still remain in the family-run stage, autocratic pursuit of short-term interests, the importance of scientific planning and development of the company’s neglect. Thus, the establishment of internal audit department has become essential for companies to develop a module to play the effectiveness of internal audit, specific and comprehensive monitoring business conditions imminent.Paper chooses SR Company’s internal audit organization for the study, the main focus of the internal audit for production processes, accounts receivable and other likely items to do careful research. SR is a good development of private manufacturing companies, preliminary design internal audit, its production technology is leader in the industry, product quality and customer praise. Difficulties for the production of internal audit work session, the cost of production is the main complex accounting objects, which also has a large demand for raw materials represented,approximately eighty percent of production costs. Each accounts receivable and other likely items balance sheet is an important reflected, there are some typical questions traditional. Therefore,his article selected the SR to finish the company’s internal audit department for the study,it is practical significant and valuable.From SR company’s development and governance perspective, the method of case analysis, internal audit agency to SR-depth study of specific examples. This paper is divided into four parts:Beginning of this article part is an introduction, mainly on the overall situation of internal audit made a brief presentation and analysis presented in this study of the meaning and purpose of the ideas and content of the study also made a simple narrative, the last of the paper structure framework and content made specifically addressed.The first part, the basic situation of SR introduced, especially its internal audit settings and descriptions. Elaborate internal audit deficiencies encountered in research in a way described, and strive to the vivid and highlight the characteristics of the company itself.In the the second part of the case analysis, a clear definition of the SR Internal Audit defects, highlighting the company’s own legacy of conflict SR family business philosophy and management models coming, and the unique problems of its internal audit department, analysis after the reason for the company’s own special characteristics proposed solutions can not be copied to reach the ultimate goal of case studies to help solve the company’s internal audit SR defects.Finally, the third part of the text, the author of the entire contents of the paper are summarized, analyzed Conclusions and Implications for the Institute in this case study obtained. SR company wants to standardize its internal audit, some from starting their own business goals, think and solve defects. Thus, the internal audit improve the economic efficiency of private enterprises, private economic research paper similar internal audit issues is very necessary and realistic.