The System Design Of Company D Internal Audit

With the deepening of economic globalization, the business environment of Chinese enterprises becomes complicated and confused. As an important pillar of national economy, the operation and management quality of state owned enterprises is not only affects the competitiveness and control capability, but also related to the economic and social development and stability. Internal audit, as an important content of state-owned enterprise governance, is an important part of enterprise internal control, and is an effective mechanism and management tool to improve management level and prevent risk.Company D, a wholly owned subsidiary of A state-owned enterprises group, is independent legal person qualification, and dedicated to oil and gas exploration for A. Company D is in the rising cycle of development, rapid expansion of scale, with huge investment and long industrial chain. Especially, its rapid developing overseas business need better management and control, and increase various potential risks. These pressing require internal audit to further develop function of prevention, detection and control, to pay close attention to the weaknesses of production and management, to predict risk earlier, to prevent and compensate effectively the fault of system and mechanism, to enhance management and to withstand risks capability. The traditional internal audit system and audit methods have been unable to meet modern business, management and development requirements. Under this background, we have to re-examine the internal audit system constructing question, that is how to select appropriate audit system facing their internal and external environment. Therefore, building an effective internal audit system that is suitable to organizational structure of Company D would be a priority.This study, based on the basic principles and spirit of enterprise internal governance and internal control, as a guideline, firstly reveal the problem and fault of current internal audit system of company D, and then, conduct a deep and source-driven analysis. According to the analysis result, combined with actual situation of business development, with the fundamental premise of internal governance and internal control, and with the starting point of prevention fraud, the author re-construct the audit organization, auditor configuration, the working procedure and method of prevent fraud, performance appraisal of auditor, treading the audit results, big-audit pattern design, etc., and re-build a suitable internal audit system for the healthy development for enterprise.