Company X —Research On Risk-oriented Internal Auditing Of Liquefied Petroleum Gas Selling Enterprises

Under the New Normal state of China’s economic development, various industries are facing changeable market situations. LPG distribution market in China, which has grown from a market consisting of state-owned participants to fully competitive market being occupied by various types of capital, is confronting challenges of pipe-line LNG and LPG. Nowadays, the LPG distribution market is starting to shift from maturity stage to decline stage. With current scales of operation, LPG selling enterprises have to effectively control cost, reduce expenses, and avoid accidents in workplace to maintain profitability. In the monitoring system implemented by senior management, internal audit has an important role to play to help the enterprises achieve operation objectives.In recent years, risk-oriented internal audit theory has become popular, and drawn the attention of enterprise management. Implementations of risk-oriented internal audit are being tried in practice. Therefore, a systematical research on risk-oriented internal audit, which focuses on the industrial features of LPG selling enterprises in China, is of certain practical and academic significance.The author of this paper has reviewed studies regarding the risk-oriented internal audit. In the form of case studies, and taking a LPG selling enterprise(Company X) as the object of study, this paper analyzed the existing problems of Company X’s internal auditing function, and provided advices for improvement in the aspect of risk identification, risk assessment, audit scope determination, audit plan and audit procedure improvement, and implementation guarantee. Furthermore, this article attempted to help internal audit function of Company X perform audits focusing on high-risk areas, and provide value-added services to the company.