A Probe Into Internal Economic Responsibility Audit Problems Of DY Electric Power Company

Recently,with the development of market economy in China,the establishing economic system brings not only a broad prospect but also enormous challenges for leading cadres.Since the eighteenth National People's Congress,the Party and the government have attached great importance to carrying out economic responsibility audit of leading cadres,in order to build a clean and honest Party and an uncorrupted government.Corruption among leading cadres in SOEs occurs frequently.With the requirement of economic society,for leading cadres,economic authority restriction has been an urgent problem.Therefore,it is particularly important to implement economic responsibility audit by internal audit department of SOEs.Internal economic responsibility audit of SOEs can prevent and control corruption,protect the safety of state-owned assets,improve evaluation and supervision mechanism for leading cadres,promote to establish modern enterprise system in SOEs.This thesis mainly adopted case analysis.In this thesis,emergence of internal economic responsibility audit is explained by principal-agent theory and accountability theory.This thesis expounds the concept,content,purpose and characteristics of internal economic responsibility audit of SOEs.According to theoretical achievements on internal economic responsibility audit and implementation in DY electric power company,this thesis analyzes problems and studies on reasons,puts forward the countermeasures to improve internal economic responsibility audit of DY electric power company.It is such a basic material for research on internal economic responsibility audit of SOEs research.According to analysis of current situation of internal economic responsibility audit in DY electric power,I find that internal economic responsibility audit become a mere formality.Internal economic responsibility audit effect is so weak.Besides,internal economic responsibility audit evaluation is very difficult and unauthentic.Internal economic responsibility audit results aren't adequately used which do much harm to audit effectiveness.On the basis of the problems,this thesis studies on the reasons in depth.Lack of internal economic responsibility audit standard system contributes to this phenomenon.Lack of related laws,regulations and supporting measures are the main points.Auditing before leaving can't executive effectively.Lack of audit intellect is another reason.For one thing,internal audit department can't cooperate with other departments.For another,internal audit department is not independent and authoritative.In addition,audit organizational structure of DY electric power company is imperfect.Internal auditors are not professional.Educational backgrounds of internal auditors aren't varietal.We must admit that this problem is bound up with irrational methods,procedures of internal economic responsibility audit in DY electric power company,including indistinctive audit emphasis,nonstandard audit procedures and lagging audit methods.The final point I'd like to highlight is that evaluation system of internal economic responsibility audit in DY electric power company is irrational.Internal economic responsibility boundary is hard to distinguish.Evaluation system is vague inapplicable.And,financial indicators are more important than other indicators.Combined with the analysis of the reasons for problems occurred in DY electric power company,I recommend some proper countermeasures to reverse the current condition.By these ways,internal economic responsibility audit can be improved.To begin with,internal economic responsibility audit standard system should be strengthened.It is necessary to improve related regulations and business guide,establish supporting measures and promote internal economic responsibility audit system.Besides,they have to improve internal economic responsibility audit cooperation with other departments and promote internal economic responsibility audit organizational structure.Internal economic responsibility audit team of DY electric power company should also be improved.They should enlarge source channel of internal auditors,enhance professional skills and comprehensive quality of internal auditors and heighten professional ethics of internal auditors.Moreover,internal audit department need optimize methods and procedures.For one thing,audit methods should be innovated.For another,audit procedures should be standardized.DY electric power company is supposed to establish evaluation system of internal economic responsibility,including distinguishing economic responsibility boundary,clearing principle of internal economic responsibility audit and setting up evaluation system of internal economic responsibility audit.Last but not least,increasing utilization of internal economic responsibility audit results will make the internal economic responsibility audit work more effectively.They should enhance comprehensive analyzing system of internal economic responsibility audit results,improve results accountability system and establish unclassified reporting system of internal economic responsibility auditFrom the exploration of internal economic responsibility audit in DY electric power company,this thesis is trying to provide a new thought and evidence to improve internal economic responsibility audit of SOEs.The theory of economic responsibility audit and internal audit can be enriched by systematic and comprehensive description of internal economic responsibility auditing which provide theoretical support for internal economic responsibility audit of SOEs.