| On the internal audit meeting held by SASAC in the year of 2014, SASAC of the State Council published a report entitled strengthening the leadership responsibility, promoting the rule of enterprises, further strengthening and improving the internal audit work of central enterprises" speech. The enterprise group is an advanced organization form of modern enterprises, which results in a task of significant complexity of internal audit due to the complex structure. Therefore, the internal audit of the enterprise group becomes very important. It promotes the smooth realization of the goal to increase the value of the organization by the supervision and evaluation of enterprise economic activities. A good internal audit of the enterprise group can help reduce the burden of government supervision, and create a good micro environment for the enterprise group.Besides, internal audit of SH Group is a leader in the industry, so this essay takes SH Group as a case to analyze the enterprise group’s internal audit practices, results and problems. Referring to the analysis of the phenomenon of the internal audit problems, this essay aims to put forward the corresponding countermeasures to perfect the internal audit of enterprise groups in China, which results in value multiplication.Speaking of enterprise group’s internal audit, there’re many experts in China and abroad that have carried out a number of areas related to it. However, throughout the related literature in recent years, we can see that the enterprise group’s internal audit system and cannot adapt to the growing risk of the enterprise development, which leads to the fact that the internal audit function is not fully played, failing in reaching the ideal effect. Also, so far by now, although internal audit has a certain history of development, the role of internal audit has not been well played, for there being many problems involved. Therefore, by analyzing the case of SH group can help the enterprise groups find out problems, and the solutions to them.SH group belongs to the key enterprises in the central group, and in the global top 500 it stayed in the front ranking during the resent years. All kinds of production technology has maintained a leading level in the world. Most important of all, through exploration, the SH Group set up a set of scientific and complete internal audit system, which offers a good example for other enterprise group to study about. SH Group internal audit has brought the direct value and indirect value, which minus the cost for the enterprise internal audit then forms the net value multiplication to the group. Facing the new provisions of the new requirements of external supervision and enterprise group, SH group finds out some of its hidden problem. Firstly, the annual audit plan fails to fully reflect the major risk areas of which the enterprise concerned, and the audit program and implementation also do not fully reflect the value of how to increase the audited entity. Because of these, the internal audit report does not fully convey the major risks. Secondly, the audit rectification lacks efforts, which leads to the problems found by internal auditing cannot be solved to complete the audit loop. Last but not least, the bad quality of internal audit staff results in lower audit efficiency and bad effect.As a consequence of these, enterprise groups need to improve a series of countermeasures. According to the problems mentioned in the above case, this essay suggests that to begin with, the annual audit plan should focus on key risk of group business areas. Then, the program and implementation of audit should focus on scene control. Meanwhile, the internal audit report should aim on locating in the significant audit issues. At the same time, put forward the follow-up audit rectification to complete the formation of audit loop. At last, Enterprise need to cultivate high quality internal audit staff through education and ideological construction to make contribution to the whole enterprise group. |
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