Research On Value-Added Internal Audit Of Group Company

The enterprise value divides into organizational surplus and operational surplus.under the premise of a certain enterprise, there is a reciprocal relationship between the allocation of resources that committed to the organizational surplus’growth and operational surplus’growth.The modern internal-control, needs to weigh the growth between the organizational surplus and the operational surplus.Using standard research and case study analysis, aiming to add enterprise values, has researched the transmission mechanisms of functions of the value-added internal controls using Poter’s Value Chain and Stakeholders Theory. It has also researched the value-added internal controls for conglomerates which have businesses in various industries and regions and which are unmanageable.Thesis firstly concludes that internal controls should ensure that the corporation’s strategic analysis is thorough and its choice is scientific, that is, the plan among the parents and its subsidies must be sensible and cohesive and its execution must be controllable and adjustable.Thesis then argues the function of internal-controls:it examines a corporation from overall perspective and can identify the corporation’s strategic plan, organize and integrate its value-chain and improve its profitability. In addition, it argues the prerequisite to implement strategic and value-chain audit. The internal auditors must be independent and directly managed by executives. The department of internal audit must be directly affiliated with board of directors.The corporation ought to optimize the department’s human resources and build its expertise.Finally, using the method of case study to take a A preliminary research about internal audit problems of AB group co., LTD.