Research On The Internal Audit Organization Framework Of Enterprise Groups In China

Since the 21 st Century, socialist market economy of China has developed rapidly, state-owned enterprises have already completed the reform of company system, and the modern enterprise system is gradually established. On the basis, the wave of enterprise group management formes, a lot of enterprise groups appear. As the competition among enterprises becomes increasingly fierce, there are more and more merging and restructuring events among the enterprise groups. The scale of enterprise group expands constantly, the management hierarchies of enterprise group also gradually increase, how to effectively supervise the management at all levels becomes an important problem to be solved. Whether the function of internal audit of enterprise group is effective is the key factor to solve the problem. The scientific and reasonable internal audit organization framework can guarantee that the internal audit function plays effectively, it can enhance the independence of internal audit, ensure internal audit adequately performs its duty, and greatly improve the efficiency and effectiveness of the audit. This article hopes to provide some reference and guidance for the innovation and development of China’s enterprise group internal audit organization framework through research on the internal audit organization framework of enterprise group.This article mainly adopts the methods of normative research and case study, proceeds from the concept and characteristics of internal audit organization framework of enterprise group, and briefly reviews the development course of internal audit organization framework of enterprise group at home and abroad. On the bases of the success experience from the domestic and foreign enterprise groups, this article propose the vertical management is the optimum choice of internal audit organization framework of enterprise groups in China. Following the independence, authority, efficiency and adaptability principle, considering the laws and regulations, audit resources and other factors, this article proposes the internal audit organization framework of vertical management which is suitable for our country’s enterprise group. The basic model is seting up the audit committee under the board of directors, the group audit department under the audit committee, the audit centers under the group audit department, and the fictitious audit institution, audit office and audit liaison according to its needs under the audit centers. In this way, the internal audit institutions coordinate with each other, form the organization framework of vertical integration, then make the “one voice” of internal audit in enterprise group come true. Through analysis the construction of internal audit organization framework of China Telecom Group Corporation Jiangxi company, this article puts forward the key points of implementing the internal audit organization framework of vertical management in enterprise group, and analysis the effectiveness of internal audit organization framework of Jiangxi, verify the superiority of internal audit organization framework of vertical management in enterprise group. At last, in order to ensure the opeation of the vertical internal audit organization framework of the enterprise group, this article puts forward the corresponding security measures, including improving the quality of audit staff, adopting the modern audit technology and so on.Through comprehensively comparising and analysing the internal auditing organization frameworks of enterprise group which exist in China, drawing lessons from domestic and international enterprise groups, combing with the reality of enterprise groups in China, this articale puts forward the internal audit organization framework of vertical management which is suitable for our country’s enterprise groups and the necessary safeguard mechanism, which is the innovation of this article.