The International Comparison On Internal Auditing In The Post-Enron Era

The relationship on Crisis and chances, according to the internal auditing profession, is a persuading issue. Wall Street Financial Crisis in the 1930s drove the true beginning of the modern internal auditing. U.S. Sarbanes-Oxley Act of 2002 is thought about as a way to reduce the negative effect with Enron, Worldcom, and many other financial scandals. It also opens the era, which will improve the internal auditing development around the world. Internal auditing begins to be the fourth key of enterprise government. Basing on the new environment, what is the role of internal auditing profession? Proceeding from such a question, this paper will analyze carefully, and make a comparison research between Chinese internal auditing standards and international ones, between Chinese internal auditing practice and international practice. We are supposed to take some conclusions, which will be helpful to the Chinese internal auditing development.The major research works include:(1) Former works about internal auditing are always in historic aspect, but this paper is based on the post-Enron era. It emphasizes on the wide characters on internal auditing by Sarbanes-Oxley Act, which also determine the current situation of the development of the internal auditing standards and practice.(2) The key of this paper is international comparison of internal auditing, it is divided into two parts, one is the comparison of internal auditing standards, the other is the comparison of internal auditing practice. Both in the post-Enron era, the former is in the macro ways, and the latter is in the micro ways. The former makes a comparison between the latest SPPIA and Chinese Internal Auditing Standards, seeing the pieces where SPPIA is worthy of learning and where the Chinese standard has the characters of its own. The point of the latter is to choose two typical cases, which are all pubic companies in U.S. stock exchange. Standing in the role of Chinese internal auditors, and therefore it reaches conclusions of the certain of success with suggestions to make new Chinese internal auditing standards and improve the practice.