A Study On Risk-oriented Internal Audit In Large And Medium-sized Enterprise

The arrival of the era of globalization has brought not only more opportunities for the development of Chinese enterprises, but also more risks. Enterprises are facing increasingly fierce market competition and more complex environment, which should strengthen comprehensive risk management. Internal audit plays an irreplaceable role in risk management of enterprises, and It becomes an integral part of the internal control of the enterprise. Risk-oriented internal audit is an important concept for modern internal auditing. In practice, the implementation of risk-oriented internal audit is not yet universal, therefore, it is an urgent task for Chinese enterprises to build a new model of internal auditing now.In this paper, the large and medium-sized enterprises are as the research subject of the application of risk oriented internal audit, the reasons are as follows. First of all, the number of large and medium-sized enterprises grows increasingly, which play an important role on promoting the development of the national economy. Large and medium-sized enterprises not only promote employment, improve the employment situation, and maintain social stability, but also optimize the industrial structure. Secondly, the large and medium-sized enterprises have larger size, and a strong strength, which have established a relatively perfect corporate governance structure, a complete internal control system and risk management basis. These are necessary to carry out risk oriented internal audit. Finally, most of the large and medium-sized enterprises in the practice don’t carry on risk oriented internal audit. However, the risk oriented internal audit can help large and medium enterprises identify and quantify risk, improve audit efficiency, control audit costs, improve capability of risk management, provide a strong guarantee for the development of enterprises. Therefore, it is necessary to study the application of risk oriented internal audit of large and medium-sized enterprises.Normative research and case study are used in this paper. Based on domestic and international literature, and combined with the development of internal audit and related management theory, the paper points out the development direction of internal audit, risk oriented internal audit. It is based on the application of risk oriented internal audit in large and medium enterprises, by comparing risk oriented internal audit with other types of internal audit, and discussing reasons,condition,subject, processes, system guarantee, effects. Large and medium-sized enterprises how to apply risk oriented internal audit is introduced. In this paper, the China Shenhua company, which early implement risk oriented internal audit in our country, by discussing the reasons, procedures, system guarantee and effect of the application of risk oriented internal audit in China. This paper will provide a clear case reference for our country’s large and medium-sized enterprises and even listed companies.