Case Study On AH Company’s Risk-based Internal Audit Improvement

In recent years, world-renowned enterprises were frequently exposed financial scandals, audit failures were adding annually, of which the internal audit department has an inescapable responsibility. One of the important factors that lead to the failure of that there is that no prevention of risk and thus failed to assess and control the risks of mistakes.With the increasingly complex domestic and international environment, enterprises are facing increasing risks,if you want to enhance core competitiveness and maintain long-term stable development, you must pay sufficient attention to risk management.In this context, more and more enterprises will apply management of risk into the enterprise, regarded as a critical factor in the ability to achieve business goals.Internal auditors as an enterprise supervision and management mechanism, the introduction of risk-based audit model has become an inevitable trend, the core of this new approach is risk, we will allocate resources to areas of risks after evaluating it, which provide guarantee to risk prevention.However, due to the risk-based internal audit is now a new thing, the process of it in China is still in the theoretical stage.Most corporates do not apply risk-oriented concept to audit, many companies still referenced to an external audit practice, thus to achieve risk-based internal audit is still a long way to go in the enterprise.AH company as a chemical company faces more and more risk in practice, it is necessary to change the traditional concept of internal audit, to establish the concept of the implementation of risk-based internal audit.THe article has a brief review of theoretical basis of risk-based audit and then briefly introduces the sitiation of audit department in AH company. Then find problems in the work process in the department on this basis, analyze the causes from enterprise level and finally offer proposals for AH company. This article proposes a common problem in the use of risk-based audit companies in the exist with a positive and practical significance for its further development in our country to provide a better research base.