A Study On The Relationship Between Risk-oriented Internal-audit And Corporate Performance

Opportunities and challenges coexisting is the biggest characteristic in today’s society, the ever-changing market environment and the ups and downs of economic changes cause the enterprises face both internal and external risks, modern enterprises only by paying attention to risk management, can win the survival and development in the increasingly fierce market competition. The case of Lehman Brothers is a wake-up call to the world, the risk management in the enterprise exists in name only, it is lack of a scientific and effective institutions to oversee risk management and make it play its due role within the enterprise. Meanwhile, DiaryKeyEnterprise of Sanlu with a long history of 52 years in China broke out a shocking burst scandal, the exposure of the scandal prompted researchers to focus on the internal audit department. The traditional internal audit mode has its inherent defects, it just focuses on the audit risks instead of focusing on otherrisksaffecting the achievement of corporateobjectives.In 1999, Institute of Internal Auditors defined the latest definitions about internal audit, which was a sign to show that internal audit has entered into the stage of risk-oriented internal audit. Risk-orientedinternalaudit as a new pattern of internal audit expanded the scope and the functions of the traditional internal audit, expanded traditional monitoring and evaluation functions to confirm and consulting, and made the audit goal fit the enterprise goal. In the long history of internal audit, internal audit rose to the height of corporate governance for the first time, clearly pointed out that the risk- oriented internal audit as an important part of the value chain, the ultimate purpose was to realize the value of enterprise and to promote the improvement of corporate performance. Also, as the two cornerstones of corporate governance--internal and external audit, effective collaboration of risk-oriented internal audit and external audit make the mutual reinforcement to the enterprise risk management, double guarantee the disclosure information is accurate and true, and reduce audit costs, enhance audit efficiency, promote sound and effective internal controls so as to improve the company’s performance level. This paper is divided into five parts, the first part is an introduction, it describes the research background, purpose and significance, domestic and foreign researches and thinks of full text research thought and framework, points out the innovation of this paper, which plays a leading role in the whole paper. The second part is the key of the paper, from the historical evolution of internal audit, which leads to the support of risk-oriented internal audit theory, analyzes its connotation and characteristics, this paper discusses the risk-oriented internal auditing risk is different from traditional external audit and internal audit, with its unique advantages to become a new type of internal audit model, then analyzes the connotation of corporate performance, including the connotation of corporate performance and measure method, The third part and the four part is the parts of empirical research, which propose the research hypothesis, selects the data of listed companies of Shenzhen A shares in 2008-2012 and do the descriptive statistics analysis of the correlation analysis, multiple linear regression and stability test. The fifth part is the finishing touch, it puts forward the research conclusions and policy suggestions.