The Research Of Improving The Risk-oriented Internal Audit In M Group

In the 21st century,the international situation is changing,economic development is accelerating,science and technology are developing.All these changes have brought opportunities to the development of enterprises,and also produced a lot of risks at the same time.How to identify risk effectively,assess risk and reduce or eliminate risk is an important subject to corporate governance.As we all know,internal audit is the third protection measure of comprehensive risk management of enterprises and good internal audit has important implications for companies.However,when the business environment is changing,the traditional internal audit model reveals a lot of flaws,such as the audit emphasis is not prominent,internal audits are inefficient and audit tests are ignored.All these disadvantages made results are inaccurate and internal audit can't play an independent and objective in improving effectiveness of risk management,control and governance processes.Therefore,in order to strengthen the demand of enterprise risk management,improve the lack of traditional internal audit model and meet the developing plan of internal audit career,risk-oriented internal audit has gradually become an important way of self-supervision and risk prevention to a company.Risk-oriented audit is an internal audit model with which internal auditing institutions can improve the quality and efficiency of internal audit work and reduce audit risk.Internal auditors can testing the organization's risk in order to determine the scope,progress,extent of audit tests and when to carry out internal audit.M Group is an excellent company in the agricultural machinery manufacturing and engineering services industry in Jiangsu Province,which is the industry leader with strong production power and plenty product lines.Globalization and diversification of business brings a broad and dynamic risk to the company,which led to the need for risk-oriented internal audit.Management's attention and the positive results that have been achieved during internal auditing confirm the necessity for an audit model transition.But the lack of experience,limited resources and other reasons also caused many internal audit deficiencies.Therefore,the study of risk-oriented internal audit issues in M Group can effectively solve problems and optimize their corporate governance,while providing advice to other similar enterprises.This paper is based on the above background and attempts to analyze the current application of risk-oriented internal audit in M Group as a case.It mainly combine the actuality of the group with the internal audit theory,and put forward the problems and specific countermeasure.This article uses the case analysis method,the standard research method and the field research to carry on the problem of risk-oriented internal audit in enterprise.The main framework of this paper is as follows.First of all,we introduce the research progress and theoretical results of risk-oriented internal audit in China and abroad from the theoretical point of view,to understand the nature,model changes,procedures and the role played in corporate governance of this internal audit mode.Secondly,we introduce the basic theory of risk-oriented internal audit from the perspective of definition and connotation,and analyze the relationship and differences between risk-oriented internal audit and similar concepts such as risk-based external audit,risk management and risk audit.We can distinguish clearly the cogitation,nature,characteristics and function of the risk-oriented internal audit.Then,this paper analyzes the strategic objectives,organizational structure,organization environment of M group,the implementation conditions and the specific procedures of the risk-oriented internal audit.On the basis of the case analysis,this paper puts forward five major problems that the target enterprise exposes in the risk-oriented internal audit,analyzes the drawbacks of existing annual audit plan,the project audit plan,the audit implementation process,the risk-oriented overall embedded type and the internal auditor's competency.Next,we give 5 solutions to M Group,including making risk-oriented annual internal audit plans and project plans,carrying out risk-oriented audit tests,promoting the whole-process management and improving the basic environment of internal audit.Finally,the article concludes:(1)Internal auditors must have a detailed understanding of the organization's external environment,industry development,market competition,and the characteristics of their own operations by asking,analyzing,or observing and inspecting procedures.This is a necessary procedure for conducting risk-oriented internal audits and can lead to the correct risk assessment.Auditors are able to identify and assess the major differences or defect risks accurately,develop the most efficient audit plan,and ensure the audit risk controlled in an acceptable range.(2)Before the risk-oriented internal audit is carried out,internal auditors should analyze whether the audit resources and audit techniques owned by the film are matched with the expectation that governor want internal auditing to reach.The competency of internal auditors and technical methods should be supplemented,adjusted and updated in time to meet the needs of internal audit.(3)Risk-oriented internal audit should run through the entire management activities.