Research Of Risk-Oriented Internal Audit In Chinese Listed Companies

The21st century is an era that filled with challenge and competition, economic globalization, the reform of information technology and the emergence of new organizations, which complicate the enterprise environment of market and business, makes enterprises in a risky business environment. To achieve business goals and management objectives, enterprises must assess risk, control risk effectively, risk-oriented internal audit is a product to comply with the demand of modern financial environment, is a new audit model all along with risk oriented, assessing the risk possibility and risk size to determine the scope and the center of the audit, evaluating of the risk management, internal control and corporate governance structure, helping the enterprise’s management through giving advice, finally achieving the enterprise’s goal of value added.At the end of20th century, the western advanced theory and method of audit had great impact on the development of our audit; risk-oriented internal audit had attracted common attention in our country. Compared with foreign advanced level of the relevant research on the theory and practice, there is a huge gap, which indicates that our country will have a big space to improve. This paper selects the research direction that not only can meet the requirements of enterprise risk management, but also can enrich the framework of risk-oriented internal theory to some extent, has theoretical and practical significance.The article is based on the summarization of the previous studies all over the world, enriching the theoretical system of risk oriented internal audit. Firstly, reviews the evolution of the internal audit and introduces the theoretical framework of risk oriented internal audit,such as essence, goals, describes the relationship among risk management, internal control, corporate governance, then presents risk oriented internal audit procedures through a listing corporation case-Gee electrical appliance company, then summarizes the problems existed in the application process of our country, lastly combines with our country’s fundamental realities and lessons from foreign mature experience, putting forward countermeasures.This article adopts the method of normative research and case study, analyzing the application problems of risk-oriented internal auditing in our country, which identifies comprehensive risk of Gree Electric Appliance by the method of SWOT and financial analysis for the first time. In the Suggestions for improvement. not only does the article point out our internal audit should be subordinate to supervisory board in order to strengthen its independence, but also build the preliminary framework which is suitable for the professional ability of our internal auditors, has guiding significance in the development of risk-oriented internal auditing in our country to some extent.