A Study On The Optimization Of The Local Electric Power Bureau Internal Audit

Since the1980s, with the background of economic globalization, the rapid development of science, enterprises are facing fierce competition, which results in a huge operational risks represented by various risks. Facing of the increasing risk, management authorities have an urgent need for the reform of the internal audit, focusing on enterprise risk identification, assessment and response plan carefully and actively implemented internal audit activities, to assist corporate management authorities to improve the overall corporate internal audit system. In April2002, the Institute of Internal Auditors (IIA) had a report submitted to the U.S. Congress, clearly pointing out that effective corporate governance needs internal audit, external audit, the Board and its Audit Committee which shows the important role of internal audit in corporate governance.The power industry is the basic industry for the national economy. Each country’s economic development strategy must focus on the development of the industry, whose success or failure is directly related to the country’s economic stability to sustainable development and the masses of people can live and work. The Local Electric Power Bureau, as the local power grid enterprises, in local economic development, plays a very important role. There are also need of good governance, internal control and improve, manage risk demand. Therefore, the combination of the characteristics of the local Power Bureau, optimization of the internal audit department of local electric power bureau, to give better play to the function and role of internal audit in local electric power bureau, will undoubtedly have a profound theoretical and practical significance.This paper is divided into seven chapters, which are as follows:The first chapter is the introduction. It includes the research background and significance, the research ideas and frameworks, and the methods and the expected innovation.The second chapter is the literature review. This chapter reviewed the literature around the value-added internal audit.The third chapter is the theoretical analysis of the internal audit. This chapter first elaborated the definition and characteristics of the internal audit, followed by analysis of the basic theory of the optimization of the internal audit, including the theory of corporate governance, incomplete contract theory and entrusted with the economic theory of accountability.The fourth chapter is the analysis of the problem of local electric power bureau, Internal Audit. This chapter summarizes the local electric power bureau business management features based on the common problem that local Electric Power Bureau’ influence on the internal audit, and the analysis the causes of the problem.The fifth chapter is a case analysis. This chapter A local Electric Power Bureau, for example, specific analysis of the internal audit of the status quo and existing problems and the causes.The sixth chapter is the basic idea of the internal audit optimization of local electric power bureau. This chapter points out the basic ideas of the local electric power bureau, Internal Audit optimization, including enhancing the whole staff understanding of the nature of the internal audit, improving the quality of the composite of the internal audit staff, increasing the independence of the internal audit department, improving the internal audit methods, grasping the focus of the work of the internal audit and perfecting the exploit the results of the internal audit mechanism.The seventh chapter is attentions to matter the internal audit optimization for local electric power bureau. They are optimizing the electric power bureau internal governance mechanisms, defining the scope of the internal audit functions, paying attentions on the relationship of the internal audit and internal control as well as attention on the coordination of the internal audit department and the department audited, in order to obtain a better optimization of internal audit effect.The main contribution of this paper is to study the internal audit optimization problems of local electric power bureau, through analyzing the characteristics of the operation and management of local electric power bureau and the common problems of the local electric power bureau. Based on the specific described a local electric power bureau, the paper targeted optimization of ideas and optimization notice, in order to better play the internal audit function in local electric power bureau, to provide a reference.