The Research On The Application Of The Value-added Internal Audit In Enterprises

With the continuously accelerated course of economic development, enterprises are confronted with increasing risks of operation, and the increasingly complicated environment of operation also exaggerates the competition among enterprises. In order to keep a foothold in the fierce competition, most enterprises reinforce their competitiveness by abandoning redundant departments. Thereupon, enterprise reorganization also becomes a trend. As the core functional department of an enterprise, internal audit must be effectively transformed and promoted. Only by guaranteeing its status in the enterprise can the expected effectiveness be better utilized to assist in the fulfillment of the objective of appreciation. Therefore, traditional internal audit should gradually transform towards value-added internal audit, in order to comply with the demands of corporate development and audit work. Value-added internal audit emerged as the times required. Value-added internal audit takes enterprise’s objectives as its own objectives, and provides value-added service and exerts value-added effectiveness through three fields, namely, internal control, risk management and corporate governance. Thus, it enhances the effect of organizational management and facilitates in the implementation of added value. However, value-added internal audit took its first step quite late in China, and it is still in the stage of exploration. Hence, there are still a series of questions during its implementation in Chinese enterprises, and the value-added function hasn’t been thoroughly exerted yet.Through the integration of theory and practice, the application of value-added internal audit in Chinese enterprises is intensively studied, through which certain suggestions are proposed to facilitate the development of value-added internal audit in China. By virtue of relevant literatures, the origin of the evolution of value-added internal audit is firstly reviewed. Meanwhile, relevant concepts of value-added internal audit are briefly elaborated, including the background of generation, basic connotation and theoretical foundation, etc. Furthermore, a basic theoretical framework is constructed. Secondly, questions that exist in value-added internal audit in the implementation in Chinese enterprises are intensively discussed and systematically analyzed. Thirdly, the process of successfully carrying out value-added internal audit in an enterprise is presented through case analysis and from the empirical perspective as an example of demonstration. Finally, the current implementation of the enterprises and the revelation in companies brought by successful cases are analyzed comprehensively. Moreover, countermeasures are proposed in light of these questions accordingly, hoping to facilitate the effective implementation of value-added internal audit in Chinese enterprises.