Research On The Optimization Strategy Of Internal Audit For Pacific International Line

Modern enterprises should face the various environmental change, nowadays, in the face of new opportunities and challenges of globalization and informational environment,many enterprises start taking active measures to push the development through the industrial strategic alliance, the group's asset restructuring to expand business. However, with the continuous expansion of the scale of the entire enterprise, imbalanced development among the branches, rapid growth to overextension, more and more internal management problems appear but not solved and some latent issues may hamper the management resulting in the management of "not in place".As an effective method of management, “internal audit” can help to discover internal inadequate and make necessary amendment and strengthen the readership and management for the Group to facilitate its continual and fast development. From the practical perspective of “internal audit,” its developing progress constantly approach to the requirement of fast development of world-wide enterprise. As we known, effective management method is a great wealth of an enterprise and thus a key to success in the world-wide commercial competition. “Internal audit” is such an effective instrument/weapon among various management methods and corporate governance, which can help to improve regulation,reduce tax risk, evaluate supervision performance, furnish value-added service and so on.My thesis focuses on the internal audit of shipping industry in order to promote the effectiveness and management of internal audit department. After some qualitative analysis and practical investigation of the shipping transactions, internal audit gradually tends to managerial auditing.This thesis presents the new structure of the shipping industry and the characteristics of the audit in the shipping industry. Some problems of internal audit department are highlighted and classified in order to further study realistic and practical solution. It points out the audit target and department duty, from establishment of the internal audit indicator system to the internal audit system construction as well as operational implementation.For the system optimization of internal audit, this thesis mentions 4 main functions of hierarchy system, including budget system, alert system, review system, governance system,as well as some key reference index during the audit and related improvement.For the procedure optimization of internal audit, through 4 stages to streamline the procedures, they are preparation stage, material handling, field audit and report stage. By analyzing the budget control, cash and bank balance audit, freight audit, finance expense audit and so on. According to this basic process details, this thesis provides some suggestion on audit procedure.For the method optimization of internal audit, this article provides some feasible advice on the checking mechanism. With the deployment of pre-audit tasks, audit methods during the field audit, audit results reporting stage, totaling three stages. According to the characteristics of the shipping companies and financial risk, this thesis analyses it and propose the optimization methods. Based on the likelihood of various risks and the seriousness of consequence, this article attempts to carry out a discussion of an evaluation mechanism. The internal auditor can further study the risk management of events corresponding to different levels of risk and the verification of the different control techniques and measures. It also focuses on the optimization scheme of audit and study the internal audit of the shipping company. Last but not least, this thesis summarizes the performance management of internal audit review, as well as application tool.