Research On Internal Audit Outsourcing Of W Power Supply Company

As a large-scale state-owned enterprise ranked among the top 500 in the world,State Grid Corporation of China is one of the leaders in China’s economic development and transformation.It takes the construction and maintenance of power transmission and transformation grids as the central task of the enterprise,positioning to ensure the stability of power supply,Cleanliness and stability are the missions to be fulfilled by enterprises,and are the "guarantees" for national security and economic development.Power supply companies have a series of inherent characteristics such as heavy social responsibility,high monopoly,capital/technology intensive,etc.,which involve many financial,auditing and management issues.Whether these three are effectively operated is of great importance.Although the State Grid Corporation of China continues to modify and adjust the internal audit system for corporate risk prevention,there are still some shortcomings in the work of it and its many subsidiaries in this regard.In order to ensure that the power supply company can obtain healthy,stable and sustainable operations,it is necessary to effectively ensure the orderliness and perfection of the power supply company’s internal audit work.The State-owned Assets Supervision and Administration Commission issued the "Implementation Opinions on Deepening the Internal Audit and Supervision of Central Enterprises" on September 28,2020,and put forward a series of internal audit work requirements and guidance opinions for state-owned enterprises.The above is an expansion of the internal audit work of enterprises.Therefore,in the context of the issuance of the guidance,it is of important practical significance to analyze and discuss the issues of power supply company internal audit outsourcing.Power supply company internal audit outsourcing has a long history.Due to the characteristics of power supply company’s internal audit department,it is very common to choose to purchase social audit services and to entrust third-party consulting agencies or accounting firms to conduct internal audit work.The relevant documents of the State Grid Corporation of China on internal audits have also formulated a series of specifications that allow selective outsourcing of internal audit work to improve the efficiency and quality of internal audits.Aiming at the issue of power supply company’s internal audit outsourcing,this article first analyzes the particularity of power supply companies,defines the functions and concepts of power supply company’s internal audit,and discusses the characteristics and characteristics of power supply companies’ implementation of “internal audit outsourcing”.The possible impacts are introduced accordingly,explaining the key content of the internal audit of the power supply company and the internal audit procedures implemented.Then,this article takes W Power Supply Company as a case,firstly makes a corresponding introduction to its basic situation,expounds the current status of the company’s implementation of "internal audit outsourcing",the basis,objectives,and the establishment of internal audit institutions,and analyzes the aforementioned internal audit The outsourcing system and the existing problems in the implementation process,combined with the principal-agent theory and transaction cost theory to analyze the problems,and try to propose feasible solutions.By combining the case and audit theory,it puts forward corresponding suggestions to solve the problem of W Power Supply Company in this respect,and hopes to make a certain contribution to the improvement of the power supply company’s internal audit and internal control.