The Research On Improvement Of Internal Control Audit Of H Chemical Industry Co.,LTD.

With the development of economy,the listed company won the unprecedented opportunities for development,meanwhile its fraud cases occurred frequently because of the company's unordered internal control,which makes investors realize that besides the audit of listed companies' financial statements,they also need to deal with the internal control by taking "necessary measures".Enron financial fraud directly led to the "Sarbanes-Oxley act".The bill strengthens the effectiveness of the internal control and it also requires listed companies to make self-assessment,they must hire an accounting firm to audit the self-assessment report.In 2008 the Ministry of Finance and other five ministries jointly issued the "basic norms of internal control".In 2010 five ministries jointly issued "the internal control supporting guidelines".The issuance of internal control supporting guidelines means our country's construction of enterprise internal control standard system.This paper took H Chemical Industry co.,LTD.as an example in the case study and analysis on internal control audit.Mainly considering that H chemical industry as a traditional manufacturing industry company,and it has a wide-ranged and typical operation flow.This paper analyzed several main processes of the H company's procedures of internal control audit.The paper identified problems existed:During audit planning stage,audit time and auditor arrangement are unreasonable and inappropriate;During audit implementation stage,audit methods are used improperly;During audit implementation stage,internal control defect standard is not clear,and auditors are easy to compromise in the communication.The paper regarded the causes of problems were:H company and CPA don't pay attention to internal control audit;Internal control audit's operation is out of control;The design of audit procedure didn't consider integration thought;Internal control auditors are not stable,and raised its suggestions correspondingly:CPA should arrange time and auditors properly,and stabilize and cultivate compound auditors at the same time;CPA should improve the audit method of internal control and use other people's work properly,and improve the review system of audit quality;CPA should judge the standard of internal control defects,and Strengthen audit communication effectively to ensure independence.