Research On A Company's Internal Audit Problems Based On The Risk Perspective

At present,there are a number of major problems existing in some enterprises in China,such as strategic helpless for development,poor governance structure,ineffective resources configuration,failure in the establishment of effective internal control system,lack of risk awareness,and poor risk management and control.As a result,the ongoing operation and development of these companies are not only greatly constrained,but also hard to establish a good corporate image and even stand out in competition.Therefore a number of business enterprises tend to rely on internal audit and implement it to the enterprise-wide risk management to maximize its usefulness in the corporate operating process.However,for many enterprises,how to the effectively react and overcome different types of risks is still a big issue.Hence,it is necessary to study a company's internal audit from the perspective of risk.This study believes that if the risk management can effectively penetrate into the company's internal audit process,it will help company's stable and healthy development.This study selects a state-owned company-company A located in Beijing,as the case.Using theoretical analysis and case study method,this thesis firstly summarizes the relevant theories of risk-oriented internal audit,and then introduces the main business and organization structure of A company.In this part,the company's sales revenue in the past three years are compared.In addition,the company's current status of internal audit is examined by questionnaire survey in order to identify the current issues in the company's internal audit and argue the necessity of introducing the risk-oriented internal audit concept.Thirdly,the study restructures the risk-oriented internal audit procedures for the case company based on its reality.Furthermore,it brings forward a series of safeguards to make sure the risk-oriented internal audit can work effectively to improve A company's performances.At last,the thesis makes a conclusion that an effective risk-oriented internal audit will bring the company an immeasurable value if it can be used effectively in the company's business practice.By investigation of the business practice of A company,the study identifies that internal audit and risk management are not irrelevant rather they are closely related.For enterprise,the implementation of risk-oriented internal audit is a realistic choice.It's not only the objective necessity for risk management but the self-development of internal audit.In a word,no matter how the internal environment or the industry environment changes,the business enterprise's operationmodel will be healthier and more effectively when the enterprise-wide risk management is applied to the internal audit process.