Study On Internal Auditing For Chinese Private Enterprises

Since China’s reform and opening up, private enterprises have made greatdevelopment in our country, the private enterprises developed rapidly during this periodin the enterprise scale, organizational structure and personnel structure’s all aspects, andnow, the private economy accounted for the proportion in the national economy is alsogrowing.As an important part of modern enterprise system, internal audit has a veryimportant significance in strengthen and improve enterprise management, perfect thecorporate governance, establish a sound internal control system, and enhance theircompetitiveness. However, private enterprises in our country the establishment ofinternal audit is the enterprise in order to improve the profitability of its businessactivities and make an active choice, private enterprise internal audit lack the necessaryguidance and management, which makes the private enterprise internal audit has somedisadvantages.Since1983, our country’s internal audit has made great development both intheoretical research and practical work, but compared with western developed countries’overall level, there is still a big gap, and most of the research on the theory and practiceof internal audit in China is carried out based on the state-owned enterprises andinstitutions, the private enterprise internal audit theory research and practice are morefamiliar. In recent years, with the development of private enterprise needs, the privateenterprise internal audit work although increased, but still unable to meet the needs ofpractice, research the breadth and depth of remains to be further improved.The author had read a lot of literature and done some social investigations. Andthen found that foreign attaches great importance to the study of private enterprises andsmall and medium-sized enterprise internal audit, and many relevant results have beenachieved. While in our country, research on private enterprise internal audit problems domore scattered, not form a systemic research. Research on private enterprise internalaudit in our country, this paper puts forward some enlightenment on internal auditmeaningful in our country, the development of internal audit of our country play areference role.In this paper, there are four problems of private enterprise internal audit: internalaudit institutions chaos, unclear orientation of internal audit functions, non-standardaudit services, audit personnel quality needs to improve. Through the history method, studied the basic theory of internal audit, uses the normative method to the problem ofprivate enterprise internal audit in our country were discussed, combined with corporategovernance theory, principal-agent theory, the integrated use of induction, comparisonanalysis method were studied. Finally puts forward improvement advice in five aspects:private enterprises should improve attention to internal audit, strengthen internal auditteam construction, develop private enterprise internal audit function, strengthen theguidance of the private enterprise internal audit, and improve the private enterpriseinternal control system.This paper altogether divided into five parts, the content is as follows:Part I is introduction. In this section, first introduced the research background andsignificance of the private enterprise internal audit; Then it reviews the literature aboutenterprise internal audit at home and abroad, to study provides the theoretical basis ofthis article; Finally elaborated the research ideas and methods in this paper.Part II is an overview of the private enterprise internal audit, including specialdefinition of private enterprise in our country’s connotation, the meaning of internalaudit, the characteristics of the internal audit of private enterprises, analyzing thetheoretical basis for the emergence and development of internal audit, laid thefoundation for later discussion.part III is with the property rights and management mode of private enterprises inour country, analysis private enterprise internal audit has carried on the induction andsummarizes the existing problems, including our country private enterprise internalaudit is the audit target is not clear, auditing power equipped with inadequate,insufficient audit function display problems such as nonstandard operations, auditprocess. Then from the corporate management, internal audit personnel quality, featuresof restricting private enterprises and external four aspects analyzes the laws andregulations environment, fully illustrates the cause problem of private enterprise internalaudit in our country, perfect suggestions are put forward for the bedding for behind.Part IV is the development and enlightment of the western internal audit. This partof western the development of internal audit, internal audit mode, content, has carriedon the simple introduction. By using the experience of western enterprise internal auditdevelopment, put forward the corresponding to the development of our country privateenterprise internal audit guidelines.Part V is to perfect the private enterprise internal audit in our country. This part ofthe function to solve the problem in this paper. Through the front of the paper analyzes the causes of internal audit problems, combined with the western enterprise internalaudit on the basis of experience for reference, put forward the suggestions of perfectingour country’s private enterprise internal audit. Include an increase in the privateenterprises to the attention of the internal audit, strengthen internal audit teamconstruction, develop private enterprise internal audit function, strengthen the guidanceof the private enterprise internal audit and improve the system of private enterpriseinternal control in five aspects.