China Telecom Corporate Internal Audit In Risk Management

In recent years, the company financial scandals have broken out in many countries which to a large extent, reflects the problems of enterprise risk management. Now, China Telecom Group Co. has successfully issued abroad, but they will face increasing risks in market management, and technology development, and monitoring of rules of law and so on. If they are not managed validly, China Telecom will not develop in a healthy and steady way, even not exist.Through making a summary of practice work and studying theory, the author who is a base auditor of China Telecom, has done a lot of research on the auditing of risk management in China Telecom.This paper consists of four chapter, which are provided in the following:In Chapter One, beginning the definition of risk and risk management, it introduces various risks in China Telecom, in market, technology, finance, human resources, etc, and measures to take to counter the risk. Furthermore, the author puts forward that the company manage risk validly through the use of COSO.In Chapter Two, the author discusses what is the importance of internal auditing in China Telecom risk management. China Telecom should put risk management auditing into practice. The advantages of unattached status, technology resource and information source decide the role of internal auditing. What internal auditing should do is to monitor and evaluate the enterprise risk management, to inspect and evaluate, to adapt and administrate, to consultate and advise, to report and defend.In Chapter Three, it points out many problems of China Telecom risk management auditing. For example, consciousness of developing risk management auditing is not strong, the framework of risk management is not perfect, perfect rules of law are not available, location is not clear, coverage of auditing is not complete, and auditing resources are not enough.In Chapter Four, it discusses how to put the China Telecom risk management auditing into practice. It includes the measures to take, content and ways of the risk management auditing. To ensure its validness, the author puts forward the idea to build a system of risk management and risk management auditing.