Research On Internal Audit Of HDY State - Owned Enterprises

With the economic progress and under the conditions of present market economy,China 's state-owned enterprises continue to develop and the internal audit as the necessary means to oversee the good operation of enterprises has been emphasized. Enter the 21st century, the exposure of the financial scandals of the two companies, Enron Corporation & WorldCom, in the United States shocked the world capital market.Sarbanes-Oxley Act, aimed to protect investors from the possibility of fraudulent accounting activities by corporations and mandate strict reforms to improve the accuracy and reliability of financial disclosures, was quickly approved and enacted by US Congress and the government.China's state-owned enterprises must also get the lessons from domestic and foreign enterprises. By strengthening the internal audit, improving the internal audit system, and achieving effective internal audit, the business risks can be minimized and the similar scandals would be avoided.Therefore, it is undoubtedly of great significance to study the existing problems in the internal audit of HD Y state-owned enterprises and analyze their countermeasures. By combining the effects and functions of internal audit, this paper will find out the problems of internal audit of the enterprise and analyze these problems,which will provide great assistances for the enterprises to solve the existing problems. The awareness and the understanding of internal audit will be enhanced, thus it provides business decisions and strategies for corporate leaders and will improve economic efficiency and create better benefits.This paper chooses HDY state-owned enterprises as the research object. By reviewing of literature, field investigation and qualitative analysis, the present status and process of internal audit of HDY state-owned enterprises was studied and analyzed. The existing problems of internal audit were revealed and effective improvement method was recommended. By taking HDY state-owned enterprise internal audit as the starting point,the significance of this study is that the optimal method to improve the internal audit and the best solution are proposed for HDY enterprise by comparing the theory and reality and analyzing the existing issues.There are five chapters in the paper.The first chapter, introduction, mainly includes the research background and significance, research ideas and structural arrangements;The second chapter, the relevant theoretical basis, includes the contents of internal audit,internal audit process, the principles and method of internal audit, post audit procedures,etc;The third chapter describes the situation of HDY Company, including HDY company profile, organization and the staff quality of internal control center, the analysis of the audit on the leave of previous HDY executive director and found issues;The chapter four analyzes the existing problem of HDY Company, including the lack of awareness of the internal audit, improper staffing, the imperfect of internal control system, the lack of follow-up audit procedures and so on;The chapter five makes recommendations, including the re-understanding of internal audit, improvement of the quality of audit practitioners, the establishment of risk internal control standards; addition of the successive auditing procedures and other measures. It will promote the good development of HDY internal audit control center.