The Discussion Of The Advisory Functions Of Internal Audit In Small And Midum-size Enterprise

With the development of private economy, more and more small and medium-sized private enterprises have introduced internal audit mechanism. Its purpose is to develop audit’s traditional function of supervision and evaluation, but more importantly, is to promote the enterprise’ overall performance and increase enterprise’ value by providing constructive advisory with the independence objective status of internal audit.However, due to the objective current situation that China’s internal audit is based on the development of state-owned economy, the quality and effect of advisory service provided by internal audit institution can’t meet enterprise’ demand of increment of value. Besides, the insufficient human resources and management level in small and medium-sized private enterprises exacerbate this contradiction. This paper aims at finding the exact cause of those problems and put forward solutions.Through the discussion of two cases, using correction of the competency model in case 1,this article investigates the internal auditors’ competency problems during providing advises. And then to analyze the same problems in small and medium-sized private enterprise; studying the internal audit institution’s method of offering consultation services in case 2, and comparing the international standard of internal audit professional practice, we can find the shortage of professional mode and acknowledgment of internal auditors from small and medium-sized private enterprise providing the consulting service.On the basis of the aforementioned studies, this paper gives the following improvements:to improve the management capacity of the existing auditors; to attract other professionals to enter or to temporarily enter the field of internal audit; with the help of external expert services; to establish a good relationship with the manager; to use a variety of consulting approach actively helping the application of the consulting results and to avoid mandatory counseling, these improvements is in order to meet the business needs of the internal audit advisory services better and to achieve the goals of enhancing the status and effect of internal audit.