DG Oilfield Project Internal Audit Risk Control System Design

Internal audit as a product of modern enterprise’s internal control development andimprovement, is considered as the organization’s own "immune system", which playsan increasingly important role in ensuring effectively implement fiduciary duty andrealizing company effective governance. However, in practice, it inevitably producesaudit risk for there always exists the problems of asymmetric information. Meanwhile,internal and external environment changes dramatically, lack of attention to internalaudit organization, auditor overall quality level is not high, lack of risk awareness andother practical problems lead to internal audit quality is not high, increasing audit risk.So, taking effective measures to prevent and control internal audit risk, improve auditquality and avoid audit failure are all important and emergent issues to be solved.Based on these, this paper combined the actual of DG Company’s internal audit andown work experience, researched the internal audit risk control system by using thebasic theory of internal audit and audit risk models. Firstly, introduced the backgroundand significance of thesis, took an overview of the situation and development of thedomestic and international audit risk theory, then described the main content, ideas andmethods of the research. Secondly, introduced the connotation and characteristics ofinternal audit and audit risk, based on this introducing risk-oriented auditing theory,which are the theoretical basis of the article. Again, introduced DG company’s internalaudit situation, and applied specific risk identification methods to identify and analyzethe project audit risk factors. Finally, used fuzzy evaluation method and AHP toevaluate internal audit risk. After determining risk degree, built up internal audit riskcontrol system, provided some appropriate security measures to control the audit riskat an acceptable level.