The Research Of Value-Added Internal Audit On Dinghan Technology

Internal audit is an important part of the internal control of a modern corporation and a vital factor to achieve a company's strategic objectives and enhance its values.However,due to the lack of the independence of the internal audit department,the limitation of the professional capacity,the long ignorance of executive level,its own defect of system,and other reasons,it is difficult for the traditional internal audit to achieve the function it should have had.The value-added internal audit,compared with the traditional internal audit,has enhanced the traditional purpose of internal audit and paid attention to the efficiently operation of the company and its value,which meets the company's interests and the long-term strategic requirements more properly.The entrepreneurs and the scholars have paid attention to the value-added internal audit since the concept was put forward.The value-added internal audit plays an increasingly important role in improving the corporate governance and the internal control in foreign countries.It has also obtained the achievements in the normative and empirical field.In China,the value-added internal audit is playing an increasingly prominent role in the field of corporate governance.But there is a great demand and growth for it for the lack of the available study results.This article,taking Ding Han Technology as an example,discusses the problems of the value-added internal audit in practice and puts forward corresponding measures.Ding Han Technology,which was founded in 2002,is a new high-tech enterprise with all types of rail electrical and automation systems.It was listed in 2007 and has become a successful private listed company.Its practice in value-added internal audit is worth learning by other listed companies.The main body of the article consists of four parts,including the introduction,the basic theory,the existing problems,the causes and the corresponding measures of value-added internal audit of Ding Han Technology.The introduction describes the background and significance of this article and the literature review from three sides,which is the concept of the value-added internal audit,the relationship among the value-added internal audit,the corporate governance and the value-added ways.The research ideas and methods are also included in this part.The second part is the basic theory of value-added internal audit.Firstly,the concept and the characteristics of the value-added internal audit are introduced.Then,this part also introduces the value-added function and the basic theory of the value-added internal audit.The third part analyzes the main problems of the value-added internal audit in Ding Han Technology.Firstly,Ding Han Technology has not drawn up the plan based on the risk assessment.Secondly,the business area is not deep enough.Thirdly,the value-added internal audit has focused on the post audit.Besides,the inefficiency and the out-dated auditing means are also elaborated.Then the article analyzes the causes in terms of the problems.Firstly,the insufficient understanding of the internal audit of Ding Han Technology is mentioned.Secondly,the human relations are not harmonious enough.The third cause is the unreasonable organization structure.Besides,the limitations of the company size,time and the experience of the auditors are mentioned.In addition,the value-added internal audit is a single model and does not match the scope of business.The fourth part is the suggestions of the problems.The first measure is that the auditors should increase the awareness of the value-added function.The second measure is to strengthen the development of the internal audit personnel system.Then,the company should improve the organizational structure of the value-added internal audit.Besides,the company should improve quality assurance mechanism and expand the range of value-added internal audit.