Prefecture-level Power Supply Company Risk-oriented Internal Audit Research

With the accelerating global economic-integration process and the rapidly-developing information technologies,plenty of modern enterprises have also facing a variety of increasingly complex risks.How to maintain sustainable and stable developments of these enterprises under the risky environment has become the focus of power-grid enterprises throughout our country.Therefore,a batch of power-grid enterprises have incorporated internal audit institutions into their own corporate-risk internal control organizations and systems,combined their internal audit work with specific risk managements,as well as proposed specific requirements for carrying out various risk-oriented internal audits therein.However,in recent years,actual effects of risk-oriented internal audits reflected by power-grid enterprises seem not ideal.Some risks insides have not been controlled through the existing internal audits.The root cause lies in that the theoretical researches and practical frameworks of risk-oriented internal audits in power-grid enterprises are relatively weak.And most of internal audit departments cannot properly apply risk-oriented internal audits into practices,restricting the roles of risk-oriented internal audits in these power-grid enterprises.Giving further studies on how prefecture-level power-supply enterprises conduct risk-oriented internal audits by combining actual practices have been deemed as positive theoretical and practical significances.With Normative Research,Case Research and other methods,this paper firstly gave a series of systematical discussions around applications of risk-oriented internal audits in prefecture-level power-supply enterprises from research background and significance.And it further combed and summarized relevant literatures,elaborated specific research ideas and contents,as well as refined corresponding innovation points.Secondly,in addition to defining relevant concepts and characteristics involving in risk-oriented internal audits,as well as specific relationships among risk-oriented internal audits and risk managements,internal controls and corporate governances,it made a series of in-depth analysis upon the necessity of carrying out risk-oriented internal audits and then refined the treasured theoretical base of risk-oriented internal audits.Thirdly,it explored special goals and principles of risk-oriented internal audits of prefecture-level power-supply enterprises and designed one brand-new "One Process & Three Supports" model fit for their practical risk-oriented internal audits.By taking corresponding risk-oriented internal-audit procedures as main lines,allocating reasonable auditing forces,creating supporting smooth business collaborative systems and applying various effective methods and tools,it aims to promote effective implementations of risk-oriented internal audits in prefecture-level power-supply enterprises.Finally,through a series of case studies upon actual risk-oriented internal audits of JN Power Supply Co.,Ltd.,it further considered the present situation of its risk-oriented internal audit work,as well as explored various defects existing in its risk-management mechanism,inclusive of failure to fully demonstrate authority and independence of internal audit department,existence of structural shortcomings in allocating internal audit staff,need-to-be strengthened capacity to effectively identify potential risks,as well as audit-efficiency restrictions due to poor applications of digital audit means.And targeting to these issues,it further proposed a series of feasible countermeasures,such as improvements of risk management systems,enhancements of positions of internal-audit institutions,reinforcements of audit-team constructions,establishments of risk management cultures,accelerations of information-construction processes in a wide range of prefecture-level power-supply enterprises.Its innovations are shown as follows.Firstly,it conducted a series of studies on practical frameworks of risk-oriented internal audits for prefecture-level power-supply enterprises by integrating actual industry characteristics of power-grid enterprises with the existing risk-oriented internal audit theories.And based on specific goals and principles of risk-oriented internal audits of prefecture-level power-supply enterprises,it successfully designed one whole-new "One Process & Three Supports" mode fit for risk-oriented internal audits of prefecture-level power-supply enterprises.Secondly,it gave further studies upon the issues existing in practical risk-oriented internal audits of JN Power Supply and proposed a series of feasible improvement countermeasures in line with actual risk-oriented internal-audit condition of JN Power Supply accordingly for providing references for carrying out risk-oriented internal audits in power-grid enterprises and other industries in future.