The Research On Application Of Risk-oriented Internal Audit In H Gas Company

It seems like the world economy is tend to be integrated with the changing of the times. The fierceinternational competition and the rapid development of information technology make all aspects of theenterprise met with the dramatic changes accordingly which never happened. Under the influence of boththe internal and external environment, the risk which enterprise faced with has become diversified fromsimplification. And this could be the key and determining factor in whether one company could get its goal.Once the enterprises want to strengthen its core competitiveness and maintain steady development, itshould attach great importance to the influence which the risk brings. Risk management has play aincreasingly important role in smooth development of the enterprise. As a result, more and moreenterprises turn to the risk management and take it into the company administration. As a supervisioninstitution of the company, the internal audit department can also put forward some suggestion to makecontributions to the company administration. It seriously plays a important role of risk management.Risk-oriented internal auditing takes the theory of risk management fully into the internal audit work of theenterprise, to achieve the goal of the enterprise as a target of the internal audit work and make jointconnection of them. Improving the company administration and intensify the internal controls on thisaccount, in order to achieve the final aid of the enterprise--providing value-added services. The theoreticalresearch of risk-oriented internal auditing abroad has been mature, but dueing to the late exploration in thisarea, domestic risk-oriented internal audit research is mainly on theoretical aspects, which lack ofsystematic research results. In practical operation, many companies are still referring to practices ofexternal audit. It’s still a long way to go in promoting the risk-oriented internal auditing. With the sustainable development and the expansion of economic business, the risk which gasenterprise faced has become more seriously. Therefore, it’s necessary for them to change the traditionalinternal audit method and set up the concept of risk management, carry out the risk-oriented internal audit.In this paper, we adopt the method of case study, in order to through studying the application ofrisk-oriented internal auditing to the H gas enterprise and making the use of the two special application ofrisk-oriented internal auditing in enterprise to promoting the application of risk-oriented internal auditingin H gas enterprise and summarize the experience for more gas companies.This paper is based on the theoretical study of risk-based internal audit. It’s reviewed the results oftheir research, and based on this mentioned above, this paper defined the feature, objective, function,procedure and essence of risk-based internal audit. After this, it’s quoted the case of H Gas Company. Inthe first place, the basic situation of H Gas Company was introduced and analyzed internal audit carriedout in this company. In order to apply risk-based internal audit in H Gas Company more efficiency, thispaper required H gas company makes a whole identification to change the risk factor into risk indicatorand build a risk indicator system. After each risk factor in this system is calculated, the important risk areaof H Gas Company will be exposed. Based on these results, significant audit areas should be cleared. Afterall this moves, the implementation of risk based internal audit has improved audit efficiency and auditresults. In addition, in order to better study risk-based internal audit applied in specific projects in H GasCompany. This paper has selected two significant risk areas in H Gas Company with special audit riskfeatures to make a research. And the paper emphasizes the risk-based internal audit applied in H GasCompany may achieve good results. Finally, the paper proposed the application of how to promote the useof risk-based internal audit.This paper starting from the practice of the audit work of gas enterprise, practically analysis the risk-oriented internal auditing with based on the research background of the gas companies and has itspositive practical significance and precious research value. It’s quoted the case of H Gas Company, made aconclusion that the risk-oriented internal audit can play an important role in risk management of the gasenterprise. What’s more, the enterprise also achieved better audit result. The risk-oriented internal audit haspromoted enterprises to improve management, improve the economic benefit and finally providevalue-added services for the enterprise.