Research On The Professional Competence Of Internal Auditors In China

The traditional internal audit pays attention to transaction, focus on financial risk management, identifies internal control deficiency, prevents enterprise risk and fraud, financial report and regulations, emphasis on the confirmation of law. The traditional internal audit emphasized the function of confirm. As circumstances changing, China is currently in a period of risk oriented internal audit transformation. The internal audit role is changing from the "watchdog" into organizational consultant, coordinator, trainers and escort. Internal auditors should not only like a radar, which surveillances the traditional risk, identify potential risks that may occur, but also provide strategy about merger and information technology. Circumstance changes make the internal audit extend its functions. Internal auditors should have higher quality to deal with it.This essay used the literature research, comparative research, the results of the survey analysis, case study method, learned from the domestic and international internal audit standards, practice guidelines and the requirement of internal auditor in developed countries, analyzed the requirements and function of the elements of the internal auditor competency. Then analyzed the influence of different development stages, different techniques and different enterprise environment to the competency of internal audit.Through two questionnaire surveys, it analysised which field needs ascending most currently. Finally, in consideration of the current situation and problems concerning internal auditors’ competences in China enterprises, the following improving suggestions are proposed: enhance expertise to focus on key risks, improve personal skills to create added value, utilize auditing tools and techniques to boost efficiency, and strengthen professional ethics to win trust. Moreover, internal auditors should put more emphasis on enriching the knowledge structure, improving business acumen, enhancing sensitivity to fraud risk, detecting strategy and operating risks, acquiring emerging technologies, building trustworthy and interactive relationships, and effectively using critical thinking.This paper creatively analyzes specific environment for domestic enterprises in the transitional period based on new trends such as the pervasive application of IT and globalization. Professional competences required for internal auditors are elaborated, and solutions are proposed to fill the gap in urgent capabilities.