The Research Of Enterprise Internal Control Audit

That the domestic and foreign financial fraud emerged endlessly let us begin to doubt the reliability of the Financial Reporting. The pure Audit of Financial Statements has some limitations, and it can not fully realize the effective supervision on the contract relationship between the investors and the managers. As a key process in the corporate governance, the Internal Control has become a hot topic in the fields of economy and management. Internal Control Audit, which arose at the historic moment, was not only the important guarantee for the Financial Reporting credibility, but also the power to make the investors to regain the confidence in the capital market, which promoted a good order for the Market Economy.United States had enacted SOX, ASNO.2, ASNO.5, which not only strengthened the management layer’s responsibility for the Internal Control over Financial Reporting, but also cleard the auditor’s responsibility for the Internal Control over Financial Reporting Audit, since then the Internal Control Audit has become a legal business of Certified Public Accountants. The construction and the auditing business of Internal Control in China started relatively late, since the year of 2008 China have issued a Series of polices, such as the Basic Standards and supporting guidelines, implementation opinions and so on, which guide the public companies to carry out Internal Control Audit in China.It’s necessary to have a study of the Internal Control Auditing, because the Internal Control Auditing theory research lags behind the development of Internal Control Auditing practice. Carrying out the Internal Control Auditing theory study has realistic and long-term significance:Firstly, it helps to solve the problem of the CPA’s audit practice, in order to arise the audit execution level; Secondly, it can promote the perfection of the Internal Control Auditing standards system in China.Based on the theory analysis part which studies the systematization of the Internal Control Audit in the US, Japan and China, the paper reveals the practical experience, the rules of improvement and the development trend, etc in the course of the Internal Control Auditing’s change. Then the paper adopts the method of investigation and analysis to analyze the Internal Control Auditing in years 2011 and 2012 which based on the two years’ Internal Control Audit reports, and I summarize some current problems existing in the Internal Control Auditing practice in our country. Together with the method of comparative analysis, I put forward some corresponding opinions and suggestions, and discusse the trends and possibilities of the Internal Control Audit over Financial Reporting that is Integrated with An Audit of Financial Statements. In the Case part, which is combined with the practical experience, the paper illustrates the ideas about the Integrated audit and the method of top-down auditing in the audit practice. In the end, the paper puts forward some suggestions and looks forward to a better improvement of the Internal Control Auditing in our country.