Research On The Value-added Of Internal Audit Of L Compan

With the development of economy and the updating of auditing theories,the Institute of Internal Auditors(IIA)redefined internal audit in 1999,and clarified the objective of internal audit to be"adding value of the organization" and "improving the organizational operation efficiency",thus,for the first time,IIA made clear the "value added" function of auditing,and internal audit has been endowed with new function and role since then.This also means that internal audit is notjust internal "supervisor"of the organization,but plays a fat part in improvingcorporate efficiency,enhancing the efficiency of corporate organization operation and creating value for enterprises.Audit in China started relatively late,and the initial auditing development focused on national audit.The development of internal audit is slow,whichhas been gradually established and developed based on national audit.Audit in China is still in the initial development stage and has a big gap from modern internal audit in western developed countries.On the one hand,under the background of economic globalization,fierce competitions and rapid development of information technology,internal audit has gradually developed from the initial financial audit to business process control audit,then to risk-oriented audit,and finally to the current new internal audit mode with"valueadding as the objective,control as the principal part and risk as the orientation".On the other hand,with thecontnuously expanding company scale,a large number of largeglobalized and multi-business group companies continue to emerge,and internal audit has become an important means for these group companies to improveinternal management level,prevent possible risks and increase corporate value.The quick change of corporate business environment and the increasingly complexity of corporate business risks are all promoting the transformation of internal audit to value-added internal audit.Both the changing international and domestic situationsand the continuous development of group companies have put forward higher requirements on internal audit,namely,internal audit should not just help enterprises to carry out supervision,but more importantlyrealize the organization objective and provide value-added service for the groups.Taking large state-owned chemical manufacturing enterprise L Company as an example,based on the summary and generalization of relevant research results in China and abroad,according to the business environment and the actual situation of internal audit of L Company,this paper puts forward the general developing objectives and plan,and combines related theorieswith practice of internal auditin view of the problems in internal audit,so as to propose corresponding measures and suggestions for L Company to improve its internal audit work.This is of both theoretical and practical significance for L Company and other similar chemical enterprises to improve the construction of internal audit system and play the value-added role of internal audit.