Sk Enterprise Internal Audit Research

State-owned enterprises are the backbone of China’s economy, represent a large part of our country’s economic power, and play a very critical role in sustaining the rapid yet healthy growth of our nation’s economy. Internal audit of the enterprises are vital to their health, if exercise in the proper way, internal audit can help manage and reduce various risks, improve efficiency and steer the company to the right direction. However, because of the inherited management model of state-owned enterprises, there are still many problems in the internal control system of our state-owned enterprises. The internal auditing departments in many state-owned enterprises lost their regulatory power which supposed to help lead enterprises’to the right direction, sometimes they even become a sole display. Therefore, how to strengthen and empower the internal audit of state-owned enterprises is a topic worth discussing.SK company is a state-owned enterprises engaged in the development and manufacturing of electronic information products. In the tide of national economic reform, SK enterprise developed rapidly and has gradually established itself as a modern enterprise. Contrary to rapid growth of the company, its internal audit has been shrinking. Currently. the audit department mainly performs the capital construction auditing and finance auditing. The internal control work is not conducted at all. The Internal audit department slips into a passive mood and faces the risk of "being marginalized’. The SK enterprise is chosen as the case study. We will try to identify the existing problems, figure out the root causes for these problems, and take advantage of the international standards and our own experience to put forward some suggestions to improve its internal audit and extend audit business scope from traditional financial audit to management audit. We will lay down specific measurements in six aspects including the internal audit organization pattern, functional positioning, and quality control in order to give a full coverage of the SK internal audit department.Combining the SK enterprise case analysis, this paper conducts some research on internal audit system in our state-owned enterprises, aims to explore the suitable pattern for China’s state-owned enterprises internal audit, tries to shed some light on how to transform and improve them, helps internal audit perform and contribute to the enterprise in managing and reducing risks, improving efficiency, promoting sustainable and healthy growth. Not only the study can be applied directly to the SK internal audit in the enterprise, but also can be used as reference and guidance for internal audit of other state-owned enterprises. The study will sure display its relevance and impact on the internal audit for state-owned enterprises.