Study On Internal Audit Risk Of Architectural Design Industry In China

In recent years,China’s economic has been growing at a stable and healthy pace with high quality.The state has launched a series of reform measures for the construction industry,which has ushered in tremendous development and change.After years of development,the construction industry has changed from chasing"quantity" to pursuing "quality".As a subdivision of the construction industry,the architectural design industry has gradually begun to transform.The vigorous development of the architectural design industry has pointed out the direction for the construction industry.Measures such as the Belt and Road Initiative,intelligent buildings,energy-efficient and environmentally friendly buildings,energy conservation and emission reduction,all provide an important guarantee for achieving peak carbon dioxide emissions and carbon neutrality.The development of the construction industry depends on design,and an important step in the design process is internal audit.As an important part for enterprises to strengthen their internal financial self-audit,internal audit plays an indispensable role,including self-examination and self-correction,self-promotion,helping architectural design enterprises prevent capital risks,comprehensively improving the level of enterprise capital management,and promoting the healthy development of enterprises.Based on the current situation of internal audit of architectural design enterprises,this paper points out the main existing problems and proposes relevant coping strategies to further improve the efficient performance of architectural design enterprises.The paper selects BD Architectural Design Group(BD group)as the object of study to expand the study of the architectural design industry.BD group is a large-scale solely stated-owned architectural design enterprise,as the industry leader which led the trend of the architectural design industry.As a vane in the industry,it has a certain degree of strong competitiveness and influence its industry.The audit department is established to perform IA work and under the leadership of the chairman directly.By carding the IA work of BD group from year 2016 to year 2020,it is found that the IA is still at development level but gets sound results.The problems of internal audit of BD group were diagnosed.These problems include the uneven quality of internal auditors,the substantive independence of the internal audit body is insufficient,internal auditors are not proficient in the main business of the audited unit,digitalization is not used fully in internal audit and internal audit quality and efficiency control are not perfect,analyzing the cause under the corporate governance and information asymmetry perspective,identifying audit matters based on risk-oriented evaluation,improving auditors’ knowledge,training and professionalism,using network-based information technology and promoting better information sharing,raising public awareness of the IA.It is discussed at the end of the paper that BD group should take measures to solve the internal audit risk.The measures suggested includes:improving corporate governance or performing strategy audit to increase substantial independence of IA,strengthening the construction of the audit team,using network-based digitization technology and promoting better information sharing,establish the incentive system for auditors,etc.