Research On Internal Aduit Of Noah Education Group

Since the introduction of the Sarbanes-Oxley Act, the development of internal audit has gradually become specialized, standardized, systematic and standardized. Although there are still various contradictions and disputes in the internal audit remain to be solved,by accelerate building and regulating the internal audit system rules and regulations, we can improve corporate governance structure, enhance the management level and economic benefits, as well as achieving ultimate goal of contemporary internal audit -enterprise value added.Especially for all kinds of large. and medium-sized group companies, how to increase the pace of reform, integration and innovation is the main direction of internal audit. Therefore, the author selected the internal audit as the direction of this research.There are many domestic research aim at how to combine the basic norms of internal audit at home and abroad and to reconcile differences and contradictions between Chinese and foreign relevant regulations. However, the research aim at the problems that exist in the process of internal audit through the analysis of existing internal audit system and current situation of commercial enterprises, combined with the relevant provisions in China, remains comparatively rare. Therefore, the author selected the representative domestic enterprise - Noah Education Group as the subject of this article.The subject of this article - Noah Education Group was listed on the New York Stock Exchange, later sold to foreign companies, so the development of its internal audit on the one hand deeply influenced by the Western Sarbanes-Oxley Ac, on the other hand combined with China's internal audit related regulations and the impact of China's economic environment in practice, furthermore, its internal audit are in advanced level compared with other domestic enterprises in the same scale. Therefore, it is have a reference and learning value for other enterprises. In this paper, the internal control theory, corporate governance theory, principal-agent theory and fiduciary responsibility theory as the theoretical support,the use of literature analysis and case analysis as the main research methods, and a representative of the large group are selected as a research object to study. Firstly, the background of the group is introduced. Secondly, the internal audit of the group is described, the internal audit status is analyzed, the problems in the internal audit process are found, the root causes of these problems are excavated, then we puts forward the relevant solution.Due to the changes in the concept of modern internal audit, the requirements of the enterprise for internal audit is no longer limited to the function of supervision,but from the perspective of maximizing the value of the enterprise, hoping to bring value to the enterprise. After the delisting of the Noah Education Group, the internal audit department gradually became the supervisor of the financial accounting department, the role of the internal audit had gotten off the original track. There were a series of issues occurred,the audit project became passive, the quality control of on-site audit was not sufficient, the related follow-up audit procedure was neglected, as well as the audit report disclosure is not sufficient.The reasons for the current situation include the inaccurate understanding of the internal audit role, the complexity of the organization's organizational level leading to the limited autonomy of internal audit staff, the confusion of the internal auditors and the audit resource allocation, the imperfection of internal audit performance evaluation system, the professional incompetence of internal auditors and so on .This paper analyzes the current situation of Noah Education Group's internal audit, finds out its existing problems and analyzes its causes, puts forward suggestions like changing the management's role in the audit,adopting the flat management mode to the internal audit department of the group,optimizing the internal audit system and procedure,establishing the performance evaluation index system which adapt to the scale of enterprises,improving the quality of internal audit staff and audit resource utilization efficiency.Therefore, I hope that expand our efforts to include other issues through the research of this article, so that the results of our oversight work can be truly significant. It is hoped that the research of this paper will provide ideas and reference for the improvement of internal audit system of Noah Education Group, at the meanwhile, hope to provide reference for domestic commercial enterprise at the same type in the progress of internal audit construction and practice.