Research On Internal Audit System Problems And Countermeasures In XD Hotel

Listed companies are playing an increasingly important role in promoting thedevelopment of our national economy. Being a vital part of the corporate governance,internal auditing can not only alleviate the principal-agent problem caused by theasymmetric information, but also ensure the enforcement of the accountability.Because of the changing domestic economic environment has changed and theexpanding scope of business activities of the firm, the internal auditing in China facesmany new problems, such as the ambiguous position of internal auditing, the overconstrained function, and the narrow coverage of internal auditing, such as Usingthe most recent research on internal auditing, and focusing on the defects of theinternal auditing system in XD Hotel, this paper discusses the improvement measureson the function and position of internal auditing, and the procedure of auditing for XDHotel.This paper combines the theoretical research with the case study, which enables adeep study on the perfection of the institution of internal auditing. Firstly, this paperapplies the principal-agent theory, the contract theory, and the accountability theory totheoretically analyze the internal auditing; I find that the internal auditing system hasproblems like inappropriate organization setting and employee allocation, irregularauditing process, the constrained auditing function, and the incomplete coverage ofthe internal auditing. The auditing system in XD Hotel cannot adapt to the worseningexternal business environment and the greater operating risk. Based on these problems,I put forward some advice to improve the internal auditing institution of XD Hotel.Specifically, the measures include bettering the organizational structure of the internalauditing, improving the allocation efficiency of human resource for the in ternalauditing, standardizing the auditing procedure, strengthening and transforming thefunction of the internal auditing, and introducing the risk-oriented model of internalauditing. The studying results of this article can be applied directly to the work ofinternal auditing in XD Hotel, which will have a positive impact in promoting theinternal auditing for XD Hotel, thus having value both in the aspects of theory andpractice.