Research Of Risk-Based Internal Auditin Y Company

With further development of economic globalization and market economy in our country, competitions between different enterprises are increasingly fierce, and enterprises are facing various risks both inside and outside. Whether risks can be handled validly and timely, to some degree, decides anenterprise’s future. In order to handle risks validly, the enterprise’s internal audit mode has gradually developed from the traditional internal compliance audit to the risk-based internal audit.Risk-based internal audit is a new audit mode. It focuses on the risk assessment rather than the test procedures, which, just so, can help enterprises to identify and prevent risks effectively, and improve risk control mechanism continuously.Risk-based internal audit goes by logical order as “target-risk-control-audit”. Internal auditing staff, at beginning, identifies and assesses risk that affects target realization, then chooses audit items according to the importance of risks and work directly on high-risk parts to assess whether particular internal control can keep risks under acceptable level, and thus manages risks and seizes opportunities to realize target of enterprises.Currently, risk-oriented internal audit in our country has made great progress and it plays an important role in enterprises’ risk management and gains more and more attention. However, influenced by many factors, enterprises in our country met many practical problems when they implemented the risk-oriented internal audit.This thesisfirstly concludes and summarizes domestic and foreign research on risk-based internal audit, then distinguishes and analyses the definition of relevant concepts of risk-oriented internal audit like connotation, characteristics, targets, objects, functions and procedures and so on, and finally taking Y Company as a case, analyses its existed problems such as accountability,information construction,staffing,excitation mechanism and so on, puts forward suggestions such as perfecting organization structure, improving information construction, raising the level of audit capacities, implementing excitation mechanism and so on, to improve the risk-based internal audit of Y Company, based on its basic information, situation of internal audit work and implementing procedures of risk-based audit. At the same time, hopefully the thesis can provide a meaningful favor to other enterprises.