A Research On Modern Risk-oriented Internal Audit Of Wuhan Iron And Steel Company Limited

In the context of economic globalization, intense business competition andtechnological modernization, the world is full of opportunities to companies, and theyare also facing the risk of unpredictable. And for business managers, their mission it isto grasp the eternal opportunities and manage risks. In such demand, Risk-orientedinternal audit produced. It is an internal audit that based on internal control, corporategovernance, and focus on the overall risk of the organization.This article firstly elaborated the generation of risk-oriented internal audit and itsrelated theories. Risk-oriented internal audit is an application of modern risk-orientedaudit which was originally produced in the external audit. According to the generalexternal audit procedure, combining the objectives and functions of risk-orientedinternal audit, this article constructed four stages of a risk-oriented internal auditprocedures, from the development of the audit plan, audit testing and audit findings,the audit reports to the audit follow-up audit. It formed an internal audit system withthe combination of risk management and internal control. Then, use the example ofWuhan Iron and Steel Company Limited, this passage analyses the application ofrisk-oriented internal audit procedures in this company, and described the results ofthe Wuhan Iron and Steel Company Limited’s risk-oriented internal audit made in theinternal control and risk management. Finally, we discussed several issues may existin the application of risk-oriented internal audit, hope to improving risk-orientedinternal audit system.Currently, China is in a critical period of the implementation of Risk-oriented,specific practice has yet to be gradually explored and improves by each company.Recently, governance structure in many corporate in our country is not yet perfect, theaudit environment and internal auditor’s capacity are still need to be improved.Internal audit applications in Risk-oriented internal audit in the Wuhan Iron and Steel Company Limited provides an excellent model for other companies, is worth learningfrom.