The Study On Internal Audit In GL Group Company

The 21st century is the period when political and economic rapidly developing ,and during this time many enterprises broke out financial scandals .Most of these financial scandals are related to not established a soundly internal audit system. For example,In 2002,WorldCom company make expansion of telecommunications systems engineering capitalized. Inflated profits of $ 3.8 billion. This case seriously damaged the order of capital market .And thanks to the company's internal audit process which made this scandal visible .In 2004,China Aviation Oil (Singapore) Co.,Ltd,speculates Petroleum derivatives trading causing $ 554 million losses, and then the company applies for bankruptcy protection. The event caused great damage of China's overseas listed company image .The reason for event was the company's futures trading decisions ignored the existence of the company's system, and internal audit has been ignored. In 2013, HongBaoLai Company found the total amount of RMB 68,960,000 YUAN fake bank acceptance bills. Made a great adverse effect on the company's semi annual results .The event reflects the company's absence of internal audit system .Internal audit is an important line of defense, to avoid business risks, the two basic functions of the internal audit: fraud prevention and supervision, can not only comply the overall supervision of the listed company, but also provide suggestions for the enterprise management. In addition, the internal audit can strengthen the implementation of the internal control system, improve the enterprise's management level. However, the role of internal audit in our country is not optimistic,not only from the theoretical aspect, but also from practical point of view, so we need further research and exploration.In the modern company management system, the theory of internal audit is more and more important. In the theory of corporate governance, it is clear that the internal audit should be implemented within the scope of the company's independent and extensive supervision, in order to achieve the purpose of improving the corporate governance structure and achieving the goal of corporate governance. At the same time, internal control also requires internal audit to achieve the effective protection of the objectives of internal control. In practice, internal audit act as an economic supervision role, in the protection of business activities .The internal audit system can ensure the safety of enterprise assets. Also the internal audit of the financial statements is more comprehensive than the CPA'S audit perspective. In addition, the internal audit as a value-added audit reflects the idea of improving the efficiency of management. At the same time, the internal audit also promotes the enterprise to realize the development strategy through the supervision function.GL Group is an international household electrical appliance enterprises engaged in the research, production, sales and service, with excellent product quality, leading technology research and development, the unique marketing model to lead Chinese manufacturing. GL Group's internal audit and the company's growth develop at the same time, but in practice it exposes a lot of problems. This paper is divided into five parts, it elaborate the internal audit theory, introduces the basic theory of internal audit and the present situation of GL Group. Link domestic and foreign advanced theories to analyze the practice of GL Group. Then give some advice for GL Group. Hope that through this study to improve the group's internal audit practice,and can promote other enterprises' internal audit from a long-term perspective .