Research On The Internal Audit Practice In GRACE Group's Strategic Development

With the increasingly fierce competition in the market today, if the enterprises want to achieve business goals better in this environment, the good inner qualities are even more important. The internal audit is a self-controlling, self-monitoring, and self-coordinating functional organization in an enterprise,and it is an important method to enhance enterprise management. As China's gradual establishment of the modern enterprise system, the authority of management is subjected to pay more attention to the internal audit of enterprises. Since internal audit was set up in 1983, it has achieved a certain amount of success in the operation and management of enterprises. However, the internal audit started late in China, and it still has a lot of problems, which affect its functions to play in practice. At the same time,realistic conditions and changes in the operating environment call for the development of strong remodeling of the internal audit. Modern internal audit shows more and more vitality and broad development space.Grace is a group company with 4.5 billion assets. How to strengthen the supervision of the whole group, avoid operational risks and achieve enterprise goals is a dilemma that the administration has to face. This paper bases on our own work practice, absorbs the audit practice and theoretical research results of domestic and foreign enterprises, and encloses the basic framework of the operation of Grace Group, organizes and implements modalities, operational skills, and also other aspects about the audit content of research. This paper constructs the operating management process control with the new internal audit mode of Grace Group, changes the company's past financial control which focuses on the internal audit mode of operation. It not only greatly deepens the internal audit scope and level, but also strengthens the internal audit of the company's management status and role. Some of them begin to show good results in the practice of Grace Group.This paper mainly focuses on the operation of Grace Group's internal audit. It can be divided into five sections.Part one is Introduction. It briefly introduces the background, literature Review and the structure of this topic. It specially expounds the importance of improving internal audit, which lays the foundation for the subsequent chapters. Part two is company strategy and internal audit. It mainly introduces the basic concepts of internal audit, company strategic development with the development of internal audit, characteristics, scope and role. From the brief introduction of this part, we can know that scope and function of enterprise internal audit is continuous expansion and extension with the strategic development of company. Comparing the internal audit, social audit and governmental audit, the difference between the three emphasizes the development of the internal audit service, the extensiveness of the scope of the audit, the independence of the audit work, the limitations of the audit objectives and the continuity of the audit process. The internal audit covers all aspects of production and operation of enterprises. This part also introduces the theory of internal audit research, which bases on domestic and foreign enterprises development strategy and the development course of internal audit.Part three is research and exploration based on the strategic development of Grace Group's internal audit. This part bases on Grace Group's strategic development goals, aims at internal audit development and existing problems, encloses internal audit on the operation of Grace Group strategic vision, business process framework, organization and implementation of project operation mode for the exploratory study. This part points out the principle of combining business processes with management processes, and resigns the basic operation framework of internal audit. New management framework of internal audit business process is the company's central management strategy. Process control and risk control as the focus of the audit comprehensive, systematic auditing and supervisory framework show the limitations, which focus on financial audit of the internal audit operation framework. Such a prominent embodies the main line of management: risk audit-oriented of modern internal audit.The auditing departments will focus on the effective assessment of internal control and risk management. This will understand and analyze the various risks faced by company. The core of internal audit as a control issue is the biggest risk around the company. Grace Group upheld independence, authority, and principles of service in the establishment of internal audit. Grace Group audit department, as a subordinate organ of the Board of Supervisors, has adjusted the internal audit institution on staffing and position in the business. At the same time, this part also introduces the preparatory phase of the audit, the implementation phase of the audit, the various stages of audit work such as the project design of the audit, the choice of objects, the preparation of the audit program, the issue of notices, preliminary investigations, risk assessment, audit opinion and recommendations, the audit report and so on. In the course of implementing the audit, auditors should not only employ a variety of methods such as observation, charts, calculating, analytical review, exchange and so on, but also introduce a follow-up management, audit quality management, and other aspects. The entire contents introduced are around the main line of Grace Group's audit process.Part four is the technical ability and usage of the Internal Audit. It mainly introduces the analysis, communication, internal control and risk management skills and the basic tenets of the work in the application of Internal Audit. In particular analytical skills must be mastered by the internal auditor such as indicators, trend analysis and comparison. In the calculation process of indicators, the factor analysis and ABC analysis method can be used. Grace Group also cites growth curve analysis and marginal contribution rate analysis from 1999 to 2005. Part 5 is conclusion and expectations. This part summarizes the whole research paper, and points out the innovation and the future development trend of the internal audit. At the same time, it also describes the deficiencies.This paper's innovation highlights lie in the two fields. Firstly, it bases on business management level and scope, constructs a new basic framework of internal audit which combines the business process audit and the management audit with risk management processes. It resolves the misunderstandings and operational problems in the internal audit of the financial audit. Secondly, the structure will be set up by merging the audit, legal system and the integration of audit and supervision organizations, as well as the diversification of the audit project organization. It is an effective solution to resolve risk management, and standardized management about the unity with the internal audit function. At the same time, it also resolves the problem on the establishment of comprehensive monitoring system of the institutions, human resources and inadequate information. The Research results hold operability and practicality on the internal audit practice of China's enterprises. Through this paper, I would like to further improve the internal audit position in the entire company, elevate its core competitiveness, and promote internal audit in China's enterprises. In this way, we can enable internal audit to become an important tool in China's scientific management of the modern enterprises.