The Application Research Of Risk-oriented Internal Control Audit In RY Company

Sound and effective internal control can ensure the efficiency, effectiveness, andfinancial statements’ reliability of an enterprise to follow the relevant laws andregulations and reduce the business risk. But at the beginning of twenty-first Century, inthe United States and other countries, the eruption of the Enron, WorldCom and a seriesof astonishing financial fraud cases, which brought great shock on the capital market, themain reason is the internal control failure. The United States of America decided torectify the order of capital market, rebuild public confidence in the capital market,promulgated the "Sarbanes Oxley act". The bill requires the evaluation report of internalcontrol over financial reports should be disclosed with regular reports. At the same timeto request the company internal control must be audited by certified public accountants.China also issued the "basic norms of internal control" in2008by the five ministriesjointly, symbolizes that our country will carry out internal control audit business.Throughout the history of the development of domestic and foreign enterprises large andsmall failures, in some sense, the failure of enterprises can be essentially attributed to thefailure of internal control and risk management.RY company is facing competition in the market environment that changingconstantly. When RY constantly improve the market share and chase the business profits,business risk increases. The company faced problems with the construction of internalcontrol and risk management is not perfect, risk-oriented internal control audit at theinitial stage, the system processes imperfect, departments and internal risk awareness isnot strong. This article embarks from the actual situation of RY company, analysis RYcompany’s application of risk-oriented internal control audit and the existing problems.Using risk-oriented audit of internal control as an important means of risk control,strengthening the construction of internal control in RY company, perfect the applicationof risk-oriented internal control audit in the enterprise, enhance the ability to resist theenterprise risk in the market competition, to provide reasonable assurance for theenterprise to achieve strategic goals.Writing text is divided into five parts.The first part, introduction. Mainly introduced the background, purpose and the significance of the research in this study. Have an arrangement of the literatures.Expounded the basic framework and the research ideas of this thesis.The second part is theory, introduced the concept, role, characteristics and purposeof the risk-oriented internal control audit, and discussed the relationship between internalcontrol and internal audit.The third part mainly introduced the basic situation of RY company and the audit ofrisk-oriented internal control in the company.The fourth part had an analysis on the existing problems and reasons of RYcompany’s risk-oriented internal control audit. Firstly, discussed the problems in risk-oriented internal control audit of RY company. Then use the relevant theories to analysisthe existing problems of risk-oriented internal control audit in RY company, find out thereasons of the problems.The fifth part, suggestions. According to the causes of problems in the audit of risk-oriented internal control of RY company, use the risk-oriented audit of internal controltheory and combining the actual situation of RY company, RY company propose theimprovement measure for the existence question of risk-oriented internal control audit.Suggestions are put forward from the respect of control environment, control activities,information and communication. Improve the construction of risk-oriented internalcontrol audit, strengthen the function of risk-oriented internal control audit in enterprise.