The Problem And Countermeasures Of Internal Audit In Tianwei Group

With financial scandals of various listed companies at home and abroad for the pastfew years, people begin to attach greater importance to the risk management of enterprises.One enterprise must be based on its sound corporate governance so as to do well in riskmanagement. The risk management infrastructure of Modern Corporation is comprised ofthree lines of defense, namely operating department, functional department of riskmanagement, and internal audit service of an enterprise. Actually, the first two lines ofdefense exist in name only in practical work, while the one that can really prevent businessrisk is still the third line of defense, which is our internal audit service.As China’s large state-owned equipment manufacturing enterprise, Baoding TianweiGroup leads to assume huge financial risk on its own owing to the excessively fastexpansion of new energy field. Worse still, the "double reverse" of Europe and America toChina’s New Energy has caused a lot of pressure on its export products. Tianwei Group isfaced with multiple risks, being beset with troubles internally and externally. Therefore, it isof great importance for the enterprise’s internal audit service to help it prevent and mitigatethe risk. However, the internal audit service of Tianwei Group is not perfect on its ownwork, which also owns some problems. For instance, its independence is not strong enough,and it lacks of authority at work. Moreover, the audit concept is so obsolete that it cannotadapt to the internal audit demands of the new period. Besides, the quality of internal auditstaff is not very high, and the knowledge structure is not all-round enough. In condition, theaudit technology lags behind and the audit efficiency is rather low, etc. The paper analyzesthe reasons of these problems and then puts forward the corresponding improvementprograms. Meanwhile, it gives relevant suggestions to several aspects like the new duty ofTianwei Group’s internal audit on information safety, exploration of internal audit new field,self-evaluation of deep internal controls, environmental management and moral rules ofcorporation evaluation, and development of off-site audit and cloud audit fields, accordingto the future development requirements of internal audit.