Research On The Value-added Path Of Internal Audit In Private Enterprises

Recently,private enterprises have become an important part of China's economic entities and plays a decisive role in the development of the socialist market economy.The 19 th CPC National Congress proposed to support the development of private enterprises and stimulate the vitality of various market entities.However,due to the rapid changes of the market economy environment and fierce competition of various industries,how to continue to keep a favorable development position in the economic wave,how to expand market share and increase value have become an urgent problem to be solved for private enterprises,which requires that private enterprises improve their own management level.Since 2001 IIA proposed that internal audit increase the value and improve the organization's operations.This is not only an innovation in internal audit theory,but also meets the needs of private enterprise development.Internal audit as one of the cornerstones of corporate governance is the necessary choice for private enterprises to move toward a modern enterprise system.It will help private enterprises avoid economic and operational risks,improve internal governance,and increase their core competitiveness.At present,more and more private enterprises in China have realized internal audit has brought value-added effects to the organization and have actively explored the development path of internal audit for their own companies.However,the internal audit of private enterprises generally has problems such as confusion of institutional settings and poor independence,which seriously restricts internal audit value-added function.This makes the research of this paper has a strong practical significance.Through the study of the value chain theory and the theory of fiduciary responsibility and other scholars' literature,this paper proposes that internal audit value includes explicit value and hidden value.Explicit value includes helping the company to find out the amount of wrongdoing,helping the company to recover the amount of losses and making recommendations;hidden value includes saving audit costs,improving audit timeliness and deterrence.Internal audit promotes the appreciation of corporate value by adding explicit value and hidden value.This paper adopts the method of case study to elaborate common problems faced by internal audit in private enterprises and deeply analyze the basic situation of Y private enterprise's internal audit,and reveals the performance of Y company's internal audit value-added through the combination of theory and practice,such as the lack of scientific internal audit model,ineffective implementation of the system,a single type of audit business,traditional audit methods,slow audit time,and poor external environment for internal audit.Only by building an internal audit value-added model,constructing a good internal audit working environment,consolidating its own foundation for internal audit value-added,broadening the types of audit value-added services,establishing an audit information transmission mechanism,improving the timeliness of audits,using Internet + platform innovation auditing techniques,and strengthen internal and external audit coordination mechanism,can ensure that internal audit work of private enterprises represented by Y company go toward the value-added direction.