Research On The Case Of Value-added Internal Audit About SG Group

As the local typical state-owned equipment manufacturing enterprise groups in Guanzhong-Tianshui Economic Zone and the New West Ham, the business scale and economic benefits of SG group has maintained rapid growth over the past decade. The organizational model, business model and scope of business from the group has changed a lot, needs of investment and financing are constantly increases. At the same time, in early 2015 SG group acquired the 75% stake in the steam turbine company called EKOL from Czech, by this, the group became the China’s largest investment companies in the Czech Republic. For the SG group, the cooperation is opportunity as well as pressure and challenge. Therefore, the used concept of internal audit system of the group neither adapted to changes in the internal audit environment nor provide effective support for the group’s future long-term development strategy. And strengthen the implementation of value-added internal audit helps SG group transfer concepts about internal audit and strengthen risk management as well as internal controls, thus promoting the group to better respond to external market pressures, improve the overall internal control level and competitiveness. The arrival of the era of big data makes the traditional audit focused on supervision and inspection no more living space because the auditing units of accounting, financial management and business management gradually electronics, process, network, the business financial data and report statistics achieve a seamless connection between systems. Meanwhile, the application of big data are opportunities for internal audit services to penetrate barriers, innovation audit means to achieve added value.The current macro-economic development of China entered a new normal stage, and strengthen the implementation of value-added internal audit reflects the management to be more effective for business development. Therefore, the value-added internal audit of SG group will help similar manufacturing companies in western to explore their own value-added internal audit to achieve the new level of development mode and adapt to the new normal economic development, seize the new opportunities for economic development strategy, deal with market risks, achieve sustainable development of enterprises.In this paper, we adhere to practical problems encountered in the implementation of the value-added internal audit as a starting point and goal in a writing mode. of case study. The full text is divided into four parts:general introduction, case description, case analysis, major suggestions. Case description section describes basic situation of the status of SG group and SG the group’s value-added internal audit, Besides, practical problems encountered in the implementation of the value-added internal audit in SG group will be presented by the event as completely as possible. Case analysis section first summarizes the theoretical basis of value-added internal auditing and make a comparison in internal audit between SG group and industry standards, industry representatives enterprise, then analyzes the reasons behind the group’s internal audit problems that exist. Suggestions for some key issues mentioned above can be devided in six areas, of which the value-added internal audit information system and the performance evaluation of internal audit are more important. Finally, the article concludes:establish and improve the value-added internal audit system helps SG group strengthen internal controls and risk management, so as to enhance the group’s core competitiveness.