Research On Internal Audit Participate In Risk Management

Entering the 21st century,the information technology development,the competitive environment changes,the risks of enterprises has become increasingly complex and changeable,risk effects beyond enterprise,this makes the expected risk management has become an important task of enterprise operation. In the process of the development of risk management,need a guide to lead it move forward,therefore,establishing risk management framework become an inevitable trend.In 2004,COSO issued the《enterprise risk management——integrated framework》on the basis of《internal control——integrated framework》,the framework put the enterprise risk management into a new step.Internal Auditing as an independent,objective assurance and consulting activity. It helps an organization accomplish its objectives by bringing a systematic,disciplined approach to evaluate and improve the effectiveness of risk management,control and governance processes,its aim to add value and improve an organization 's operation condition. From this definition can be seen the internal audit's scope has expanded to the risk management,accordingly,the internal audit participate in risk management to become the need of enterprise development. This paper is published in the ERM framework,researching about the internal audit participate in risk management.This paper is based on the ERM framework as a guide,firstly,under the ERM framework expound the internal audit and risk management's theory which is related with them,then clear the roles internal audit in the risk management and the effect of the internal audit in the risk management. Secondly research the steps and contents of internal audit participate in the risk management. The concrete steps including eight aspects,evaluate the enterprise's internal environment,evaluate the enterprise about the setting of target,identification of enterprise risk events,confirm of enterprise risk assessment,check the enterprise's risk response,assess the enterprise's control activities,assess the enterprise's information and communication,supervise the enterprise's risk management. Thirdly introduce the cases of the internal audit participate in risk management and obtains several enlightenment,more in—depth understanding of the internal audit and risk management. Then analysis the status and reasons under the ERM framework completely, through questionnaires to survey the status about the internal audit and risk management in our country and analyze the results,then point out the two reasons about internal audit participate in risk management. Finally,put forward four sorts of concrete countermeasures aim at the internal audit participate in risk management under the ERM framework:0ne is to perfect legal laws and regulations,improve the system of the standards;Two is to clear the target of internal audit,foster the conception of risk management;Three is to expand the function of the internal audit,join in the risk management overall;Four is to strengthen the construction of the audit team,improve the quality of audit personnel.