The Research On The Improvement Of Internal Audit In Siwu County Electric Power Supply Company

In August 2013, China Institute of Internal Audit issued The Chinese Internal Auditing Standards. The function of internal audit by supervision and evaluation has changed to confirm and consult. The new standards have expanded the scope of internal audit. In April 2014, The national audit office has entered the state grid corporation, of which the audit result on 21 released power transmission and transformation projects reflects that a slush fund was built by the local power supply company and thus internal audit needs to play the role of immune system and family doctor.The article was written by logic thinking of "asking questions-analyzing problems - solving problems", and will be supported by case study and literature review. Referring to the related research of internal audit, the theoretical basis will include corporate governance, the individual behavior theory of organizational behavior and risk-oriented internal audit theory. The article will introduce the current situation of Siwu county electric power supply company including operating characteristics, preparation of internal audit organization, ways of value-added internal audit, internal audit process and audit results and so on. Then the article will reveal the problems of ill-prepared of internal audit organization, shortage of human resources of internal audit, disconnection of internal audit process, insufficiency of performance audit and value-added evaluation, complication of interpersonal relations and so on in Siwu county electric power supply company. And next the article will point out the reasons leading to the above problems such as the corporate governance structure, the value chain concept, performance evaluation mechanism and other reasons. Based on the above analysis of problems and causes, the article will correspondingly put forward several improving suggestions that the company should explore a reasonable internal audit organization pattern, improve interpersonal environment of internal audit, perfect profession management mechanism of internal audit, improve design and implementation method of value-added process and build value-added scoring system of internal audit.In this paper, through the case study about internal audit problems and the corresponding improvement suggestions in Siwu county electric power supply company, it aims to promote the internal audit development of the case study company and even the similar county electric power supply companies so that internal audit can improve the operational efficiency of the grid and further increase the value of the state grid corporation.