Internal Audit Is Involved In Risk Management Related Issues

Along with economic development, the expansion of business scale, the risks facing enterprises should also gradually increase. In order to gain the superiority in the fierce market competition, Enterprises should enhance its risk management. Enterprise's internal audit department as a function of the department, because it is in a relatively independent status, participating in the risk management has its own unique advantages. In 1998 international Internal Audit Association (IIA) from the different perspectives of the worldwide internal audit conducted a study issued the "competent internal audit framework conditions". The core shows that the risk management and internal audit seeking to prevent the transfer, practitioners will adapt to this change. Risk assurance services for the center, through the introduction of the system, professional approach to evaluate and improve the reliability of results practice, help organizations achieve their goals. Based the above study, IIA made in june 1999 internal audit of the new definition: Internal audit is to add value and improve the organization and operation of an independent, objective assurance and consulting activity. Internal audit participating in risk management is the latest development in the direction of the internal audit, this is not only benefit for the internal audit provided an opportunity for self-development, but also conducive to occupy the dominant position in market competition. This is a win-win outcome, so I think the study that internal audit involved in the risk management is very meaningful.I make reference to the results of previous studies on the basis of writing this article. The full text is divided into four parts, the first part is risk management and internal audit, this part includes risk management concept, the relation of internal audit and risk management, the role of internal audit in risk management. The second part, dealing with the causes of internal audit in risk management, is written form three aspects: the need for enterprise to cope with the risks facing it, the needs for internal audit to develop and the unique advantages internal audit participating in the risk management. The third component is the key text, which is the main operation internal audit in risk management, how to play the role of monitoring and evaluation, how to play the role of advice and suggestions and so on. Part IV is the problems paid attention to for the internal audit in the process of risk management from enterprise management and internal audit staff angles; they need to make efforts to deal with this new challenge.