The Discussion On The Problems And Countermeasures In The Application Of The Value-added Internal Audit In Industrial Securities

With the deepening of China’s financial market innovation and financial system reform,the securities industry is moving to a stage of overall development,which increased the risk of securities companies.But there are both opportunities and challenges,in order to adapt to the increasing risks of multi-structure business and internet finance,coping with the industry competition,securities companies need to improve corporate governance and increase the value of company.Internal audit is one of the most important parts of corporate governance,known as the window of company.Through systematic and standardized method,internal audit monitors and evaluates all company activities and helps improving running of organization,which plays an important role that cannot be substituted.Value-added internal audit is a new phase of development of the internal audit model.It aims at adding organization value and improving corporate operation,and helps to achieve organization goals by providing assurance and consulting activities.At the same time,the definition of value-added internal audit involves concept of adding value,thus it promotes the application of risk-oriented audit pattern and requires auditors’ management participation.In order to reduce overall operation risks and loss of risk,it chooses to apply systematic and standardized method of risk management to evaluate compliance and effectiveness of business activities and report risks of the company,which meet the demand of securities companies.Therefore,a growing number of securities companies have tried to apply value-added internal audit to improve company management and achieve organizational goals.However,it appears some problems in the concrete application of value-added internal audit,such as lacking of understanding and tools,poor application results and so on,which limit the development of value-added function and the growing of enterprise value.Based on the theory of value-added internal audit,using logic analysis and case study,this paper selects Industrial Securities as the research object,combined with actual situation of Industrial Securities’ application and the present situation of value-added internal audit,analyzes the present problems of internal audit as well as the reasons,and put forward the suggestions for improvement.This paper is consists of six parts.The first part is an instruction part,which mainly introduces the research background,research significance and the purpose of this paper.The second part is the summary of value-added internal audit theories.This part introduces the definition,characters and theories of value-added internal audit,and elaborates the function of value-added internal audit in corporate governance,risk management and internal control.Based on the above,the third part introduces the application of value-added internal audit in Industrial Securities,which includes the background of the company,the internal audit system and present situation of value-added internal audit application in Industrial Securities,such as the combination of internal audit and risk management,the framework of value-added internal audit and the process of value-added internal audit.The forth part analyzes the problems as well as the reasons in the application of the company’s value-added internal audit from the respects of value-added concept,function,quality and achievement,including analysis on lacking of understanding of value-added internal audit in functional departments,the weak effect of value-added function,problems on risk assessment tools,frequent illegal items occurred in different securities sales department and the poor application of value-added results.The fifth part is about the suggestions for improvement.It provides advice in terms of concept promotion,internal audit organization,function development,ability reinforcement and quality control.The last part is the summary of this paper,through the analysis in this paper,it provides a feasible solution for improving management and achieving business goals.The problems appeared in the application of value-added audit in Industrial Securities is also the main problems faced in our country’s security industry,through the discussion of the application of value-added audit in Industrial Securities,on one hand,it can help promote and provide reference for other companies to improve value-added audit effectively and encourage enterprises to establish value-added concept of internal audit department,on the other hand,it also expects that this research can play a valuable role to inspire more businesses and individuals to join the value-added internal audit issue research and dedicate themselves to the improvement and development of value-added internal audit theories and practices.