Case Study Of Communication In The Company’s Internal Control Audit

It can be got from the management theory of Seven Functions, which is proposedby Fayol, the Founder of the management process school, namely planning,organizing, personnel, directing, coordinating, reporting, budgets, that communicationis inseparable whatever the planning, work organizing or personnel managementduring the management process. Also, the internal audit-one means of internalmonitoring and management, cannot be separated with communication. The effectivecommunication of audit can reduce the cost of internal audit, reasonably distribute theaudit resources to reach the audit goals faster and better and improve the audit quality.Currently, communication skills of audit auditors still have a lot of deficiencies. Andscholars study audit communication what is focused on communication skills. InternalControl Audit is an important part of Internal Audit.Depend on audit communicationdefects, this paper selects the Internal audit of large enterprise groups as thebackground.Through the study of the audit communication of internal audit staff and thecomprehensive and rational analysis of the factors affecting the internalcommunication, this paper attempts to find the ways to improve communication skillsof internal audit staff according to the factors analysis.This paper comprehensively adopts the methods of literature review, theoreticalstudy and case study to carry on the deep study of the communication content andprocess system of internal audit staff. Firstly, this paper introduces the currentsituation of audit communication and audit of internal control and stresses on theimportance of communication in the audit of internal control. Secondly, it collects andclears up the related literature of scholars at home and abroad on the audit of internalcontrol, management communication and audit communication to discuss the researchachievements and limitations of the present scholars on the audit of internal controland of the audit communication. Then, it comes up with the related theories ofmanagement communication, principal agent theory and the Game Theory which willbe involved during the study of audit communication. Furthermore, to make the papermore relevant and practical, this paper selects the large enterprise groups as thebackground and the audit process of internal control of the internal audit staff to theGroup subsidiaries as the object to find the self-communication problems of theinternal audit staff, the system problems of internal audit and the audit process defectsof internal control existed in the communication of modern internal audit. Therefore, it analyzes the reasons leading to the problems according to the problems and theGame Theory. Under the condition of incomplete information, there is gambling ofcommunication and information between the internal audit staff and the audited entity.Finally, based on the theory study and the results of case analysis, this papercomes up with the suggestions of improvement for the audit communication ofinternal audit, which is to improve the rules of internal audit and strengthen theinformation construction from the viewpoint of Group company and to improve theself-quality and professional judgment level of internal audit staff and promote thecommunication ability and skill from the viewpoint of internal department.