Risk-oriented Internal Auditing And Corporate Government

At the beginning of 21 century, many accounting scandals happened. These accounting scandals make people pay more attention to corporate government. Eron company's internal auditors played a very important role in detecting its accounting scandal that made the public and SEC realized the value of internal auditing. Internal auditing becomes the new research point of corporate government. There is a perspective that corporate government is comprised of four cornerstones: the Internal Audit, the External Audit, Management and the Board.In 2001, the Institute of Internal Auditors announced a new concept of internal auditing. The new concept pushes internal auditing into the risk-oriented auditing stage. Risk-oriented internal auditing pays more attention to the risk management mechanism and corporate government except traditional control.Nowadays there are a lot of questions in our country's internal audit. For example, our internal auditing models are in a low stage, few corporations adopt the risk-oriented internal auditing. Internal audit department's position is lower and can not meet corporate government's demands. The purpose, work scope, and object of internal audit activity are very narrow. There are little internal audit activity performed on risk-management and corporate government. Internal auditors have no enough ability to perform the risk-oriented internal auditing.So some measures must be taken to solve the problems. First of all, internal audit's position, the scope of work of internal audit department and the internal audit mechanism should be defined. Secondly, provide some development measures of our country internal audit that should be taken. Thirdly, the requirements of the risk-oriented internal auditing put into use in real work condition of China.