Research On Problems Of Internal Audit Transformation In Chinese State-Owned Enterprises

Internal audit transformation of state-owned enterprises have been traveling the road for many years, the internal audit independence and authority of the achievements for all to see. But since it is in transition, since the reform, the emergence of various problems are inevitable. Some issues have seriously hindered the transition even continue to advance. In this context, analysis of internal audit SOEs appear in the transition process problems and identify improvement measures accordingly it is very necessary.Internal restructuring of state-owned enterprises is revised IIA internal audit in2004, a new concept for the theoretical foundation. The purpose of the paper from the internal audit, internal audit work focused on three aspects of the internal audit function to analyze this new idea, and then draw the direction of the internal audit transformation of state-owned enterprises, including changes in auditing specific location, changing the angle of the audit, change audit objectives seven aspects.But our internal audit of state-owned enterprises in the transition process, there have been a variety of problems, the most prominent is the four issues, including the management of scientific, institutional set unreasonable, the audit team quality does not meet the transition requirements, and audit quality assessment system is imperfect. These issues are not improved, it is likely that the final transition ineffective.For these four aspects, before making the corresponding improvement measures introduced Shenhua of China’s state-owned enterprises successful internal audit cases. Analysis of this case is that the internal audit function from the Shenhua Group, Internal Audit System, set up internal audit, internal audit team quality, internal audit quality control in five aspects, which other state-owned enterprises to solve our problem of internal audit transformation great reference.Finally, on the issues raised above, combined with Shenhua Group’s success stories, suggest improvements of internal audit of state-owned enterprise restructuring. Specific improvements include robust internal audit management, improve the institutional set up and improve the quality of personnel, and quality assessment system.