The Analysis On Value-added Function Of Internal Audit

At the beginning of this century internal audit has played an important role in a series of financial fraud cases, so it has become worldwide focus. Today, we are in a changing economic environment, many countries and related international organization realize the necessity to improve the internal audit. According to the new definition of internal audit given by IIA, we know internal audit is the management control system which can make the aim to be fulfilled. It is an important part of the corporate goverance structure. As an important component of corporate governance of the internal audit, reasonable setting in relation to corporate goverance efficiency and accountability competion. On the base of accountability we analyzed the historical evolution of the internal audit and thought the responsibility dominate the internal audit development. Combined with the internal audit of historical development we pointed out the internal aduidt is activities to creat value for the organization. According to the new definition of internal audit given by IIA we known internal auditing is a kind of independent consulting activities, its purpose is to add value and improve organization. We put forward internal audit's value-added related basic theory, such as definition, demand object, needs motivation.Value-oriented internal audit with a new perspective and stood in the new height which should service in the whole of the corporate governance structrue, improve the efficiency of corporate governance. This paper defines the concept of internal audit, probes into the connotation of the internal audit. This paper reference the research results and rich experience of American internal audit a analysis the demand of internal audit object and specifies the internal audit how better to play value function. The paper specifies the internal audit should provieded confirmed and consulting services in corporate governance and internal control and risk management the three areas. A detailed description of the intrrnal audit report mode and internal audit information communication is the key factor of corporate governance efficiency. The traditional internal control evaluation focuses on confirm services and the internal control self assessment focuses on consulting services. Nowdays, external environment of corporate governance change greatly which increased the difficulty in risk management. Suggestions of Internal auditors to assess the risk and the improvement were proposed to assist managers to improve management efficiency.Based on the survey of internal audit practice, we analyses the existing problems of internal audit in value-added aspect and puts forward the countermeasures. The paper indicated that internal audit's porblems are mainly embodied in build sysem, responsibility mode selection, strcture, function expansion, cultural construction and talent cultivation. From the internal audit background analysis reasons of the forma--tion of the problems and puts forward the countermeasures. We think the internal audit institutions shall be set in the process of marketization, achieve the manager's real need. We shuold clear management, the audit committee, the internal auditing department's responsibilties. We should focus on developing consultation service, understand the role of internal audit, cultivate the intranl audit culture, improve the comprehensive quality of intral auditors, strengthen internal auditing business level, provide human resource security and so on.