Research On Value - Added Internal Audit Based On Value Chain

With the development of internal audit and transformation of related concepts, the development of value-added internal audit is already on the trend, there are more and more companies start to put value-added internal audit into practice. In this case, IIA(Institute of Internal Auditors) and China’s new standard of internal audit have provided a new definition and connotation for internal audit. However, at the present, the research of internal audit is still on the primary stage. So these findings are not adequate enough to guide the practice. There are many problems need to be solved. Therefore in this paper I stand on the perspective of the value chain, combined with the case study of A company to explain how to put value-added internal audit theories in practice. In the case A company is a branch of a large domestic car manufacturers. But it faced the problem of profit decline since it founded. So the heads of the group decide carry out value-added internal audit to A company, and achieved good results finally.The whole article is divided into six parts. The first part is introduction. It is about the present situation of internal audit development. Then introduce the frame and innovation point of the article. The second part, I introduce the connotation and concept about value-added internal audit at first. Then it is about the differences between traditional internal audit and value-added audit and the way to add value for companies by value-added internal audit. The third part, it is about the key points of value-added internal audit based on the value chain theory. I mainly explain the rationality of introducing the theory of value chain to value-added internal audit, and stand on the perspective of value chain to explain supply chain audit should be an important way to put value-added internal audit into practice. Finally, explain the contents of supply chain audit. The fourth part is about case: it took A company as an example. Firstly I introduced the company’s Operating conditions, then the audit process of the company. Finally it is about the auditor’s suggestions and the effect of the audit. The fifth part, It is about the inspirations from the case of A company, is mainly about the ways to improve internal audit based on the theory of value chain of value-added internal audit. The sixth part, point out the shortcomings of this study, put forward the prospects for future research. Emphasize with the advance of value-added internal audit, it will certainly to play a greater role in promoting enterprise performance.The most important part of this article is the fifth part. The whole research is about the company’s operating conditions the existing problems and the auditor’s advice. In this article I pay attention to combine the theory of internal audit with practice. It can play an exemplary role for similar enterprises.