Study On The Related Question Of Internal Audit Involving In Risk Management

The economic globalization and the competition are intense day by day; Information technology and it's application rapidly expand; The finance and the financial derivation become complicated more and more; The transnational purchase, the annexation and the strategic alliance become the important content of enterprise strategy management in the present age, and this causes management reform of the organization; These environmental variation directly causes the uncertainty which the enterprise faces to enhances greatly and the risk enlarges ceaselessly. The continually eruption of company bankrupts and governance crisis, which not only makes investors, employers and other benefit counterparts being disastrous, but also means the beginning of the era of risk management. It's necessary for enterprises to focus on how to avoid risk and setting risk management as their core strategy. Facing the god-given chance, in order to making internal audit and risk management progress commonly in the environment which the operational risk enlarges, internal audit already extended its scope to risk management. How does internal audit participate in risk management become the hot spot of research.This paper will review the historical evolvement of internal audit and risk management practice. Analysis the driven factors of internal audit participate in risk management. Along with the fiduciary duty extends its scope, internal audit extends its duty to risk management domain. As a result of its own unique superiority, internal audit can play a role in risk management. Then, take each essential factor in ERM frame of COSO as the object of study and analyze the responsibility of internal audit. Based on each essential factor of ERM design's rationality and efficiency of its performance, internal audit may appraise that organization's comprehensive risk management is effective or not. Last, elaborate the issues which should pay attention to in the process.