The Study Of Oriental Co.LTD’s Construction Of Risk-oriented Internal Auditing Model

In 2014, the latest version of the Chinese internal auditing standards released by the China Institution of Internal Audit (CIA) kept fully consistent with the international internal auditing profession on relevant risk-oriented concept. Risk-oriented internal auditing model has been effectively developed by domestic and international companies, and has effectively improved the risk control level of enterprises. It has also further proved that auditing can create value for the company.The Oriental Company discussed in this paper is a cement manufacturing company. With the emerging consequence of the domestic cement industry’s overcapacity, the growing competition among all cement brands and the stricter government supervision and control of the safety management and environmental controls, the various operational risks Oriental Companies faced have been more complicated and diversified. The risk concept, which is becoming more popular, makes Oriental’s decision makers pay much more attention on the risks. They required internal auditing to create more values based on risk, while the original auditing model was clearly unqualified. So they need a more effective new risk-oriented audit model.According to Oriental Company’s specific situation, I reconstructed the risk-oriented internal auditing model and provided specific methods as well as safeguard measures, which can keep the model being effectively carried on based on the internal auditing and risk theories. There are two innovative points of this article. First, I systematically constructed the operation of risk-oriented internal auditing from three dimensions which including the filtration of auditing objects, working models and adjustment of performance evaluation indicators. Second, I took reference of a traditional Chinese medical science theory "Looking, Listening, Question and Feeling" to clearly understand the auditing model talked above and wide the internal auditors’ view of auditing activities.Oriental Company has implemented the risk-oriented internal auditing model. The model is more close to the practical operations of the company and aligned with the company’s long-term development objects, so the model are more practical and realizable. I hope this auditing model can not only increase the value of Oriental Company’s internal auditing work but also provide a good reference for the other companies.