Manufacturing Enterprise Internal Performance Audit Research

With the social and economic development, the continuous establishment of modern enterprise system and the continuous improvement of transparency of information, enterprise owners and managers, and related social interested parties no longer merely require that financial accounting information for enterprise economic activities should be authentic. Moreover, on the basis of authenticity, they also want to understand the performance of enterprise economic activities. As an modern enterprise management tool, how can audit be used in evaluating enterprise performance and providing relevant information to related interested parties at the same time of conducting traditional financial audit is the focus of concern to the industry.This paper commences from the characteristics of manufacturing enterprises, economy, efficiency and effectiveness of internal performance audit in manufacturing enterprises are defined and the relationship between the three is described, also the author illustrates both the subject and object of the internal performance audit of manufacturing enterprises and the internal performance audit procedure. This paper reveals the existent problem in the internal performance audit of manufacturing enterprises, such as lack of performance audit regulations and guidelines, quantitative evaluation criteria are not uniform and the qualitative criteria is very difficult to grasp, experience composition is many and no theoretical guidance, the internal audit staff lacks the knowledge of performance audit. Aim at the existent problem in the internal performance audit of manufacturing enterprises, the author use the economic theory of fiduciary duty, internal control theory, cost-effectiveness theory and game theory to analysis the reasons of the existent problem, and there are many reasons, such as the fiduciary responsibilities of ownership and management are not clear, the internal control system of manufacturing enterprises is not complete and is not executed perfectly, the necessity of internal performance audit of manufacturing enterprises is not attached to the regulatory level, there is no uniform and standardized manufacturing performance audit index, the managers pay more attention to the audit cost than the effect of performance audit, there are performance audit guidelines and operational procedures, the enterprise mangers' standard thought is serious to neglect the social effects, the game behavior between the internal audit staff and employees(or the external stakeholders, the board of directors) is not full.Finally, the author proposes related measures for the causes and problems, such as the company should strengthen the concept of the publicity of the internal performance audit, improve the status and independence of performance audit department, stress the necessity of internal performance audit in manufacturing enterprises, pay much more attention to retraining of internal audit staff to improve the overall quality of internal audit staff, increase the strength and depth of research to establish the number model for the non-financial indicators, improve the internal control mechanisms of manufacturing enterprises, strengthen the game behavior between the internal audit staff and employees(or the external stakeholders, the Board of directors).This paper is based on the analysis of the case of manufacturing enterprises internal performance audit, in accordance with the basic audit procedures generally accepted by auditing profession, by building a set of index system of performance audit, the author conducts a performance evaluation for manufacturing enterprises by evaluating indexes from three dimensions, including economy, efficiency, and effectiveness indexes (including equity and environmental resistance indexes), as to prove the necessity of starting performance audit in the manufacturing enterprises.