Research On Enterprise Risk Based Internal Auditing

It has been a long time since internal auditing shows its origin and history. However, it has not getting a big step forward until modern times. Lawrence Soyer, the American famous internal auditing scholar and Father of modern internal auditing, has said that the role of construction in internal auditing is more helpful than protection and detection effects in enhancing gains or reducing costs. Risk-based internal auditing just starts from the risk analyzing to propose some effective advice in how to control and lower risks. In this case, enterprises will confront all kinds of risks with the participation of risk-based internal auditing while enhancing its development and total value. As an independent and objective activity in confirming&consulting, modern internal auditing helps enterprises to attain their goals in risk management, internal control and governance. In addition, it also promotes enterprises a lot for the value adding and organization processing. With the entrance into21century, internal auditing has gotten a big step forward while marketing economic system is getting better and better, globalization and scientific technology are both moving faster and faster. Risk-based internal auditing is the newest fruit.This paper has started from the background and meanings of enterprise risk based internal auditing, illustrating the major papers both in domestic and abroad. Based on that, we have finished the thoughts and framework as well as innovation and weakness in this paper. After then, we have analyzed the basic theory including the definition of production and development in this field, the effects of internal auditing for enterprise. Then, we have transferred to the definition and characters of enterprise risk based internal auditing and the relations among relative conceptions for them. Next, we have illustrated the necessity and conducting methods with procedures for enterprise risk based internal auditing. As a case showed of M company, we have got the major point of enterprise risk based internal auditing. In this occasion, although there has been a big step forward in our country, we’d still like to propose several possible problems in real life. Finally, we offered some suggests and to some extent it would hopefully enhance the enterprise internal auditing in our county for future.