Research On The Risk Oriented Internal Audit Of Xiangtan Steel

In 2016,China's supply-side reform policy put forward a number of policies such as cutting overcapacity in the steel industry,which marked that China's economic growth entered a new trend and the risks faced by enterprises in various reforms became increasingly severe.President Xi proposed to "take the goal of further realizing the appreciation of the value of state-owned assets as the goal,increase the intensity of enterprise reform,and focus on enterprises' sustainable risk resistance".Modern risk-oriented auditing is also known as risk-oriented strategic system auditing.Firstly,it is advocated and gradually implemented by international large accounting firms.In 2006,the IIA issued a new international framework for internal audit professional practice(IPPF),which was subsequently adjusted and supplemented in 2003 and 2016.In 2013,China association of internal audit comprehensively revised the standards,comprehensively and systematically implementing the concept of modern risk-oriented audit in aspects of audit process,audit content and technical methods.The establishment of internal audit system requires continuous exploration and innovation,but the specific application in various industries still needs to be explored in the actual business.The research focus is to judge the identification,assessment and response to possible risks in the internal management process of the organization,which brings new opportunities and challenges to the development of internal audit.Based on the current trend of risk-oriented internal audit,including principal-agent theory,information system cybernetics,risk management theory and control self-evaluation(CSA)method,this paper focuses on the combination of literature induction and case analysis,and selects Xiangtan steel as the research object to conduct modern risk internal audit research.As the internal audit of iron and steel enterprises is facing a new round of development and reform,it is an inevitable trend for the traditional internal audit mode of iron and steel enterprises to change to the modern risk-oriented internal audit mode.As a state-owned steel enterprise,Xiangtan steel has a large scale,extensive business,and many risks.If the internal audit governance is not in place,it will cause serious consequences.In this paper,the performance of specific internal audit application program of Xitangtan steel is demonstrated through "evaluation project of energy saving technology transformation of Xiangtan steel in eliminating old boilers and recovering gas",and the plan is made,the audit test is made,the audit findings are obtained,the audit results are made,and the follow-up audit is made.Combining with the steel industry status,governance structure,operation status and financial risk analysis to understand its internal control and major risks.Through the above analysis of Xiangtan steel's internal audit system research,found in the risk-oriented internal auditing in the lack of risk management standards,internal audit infrastructure problems such as incomplete,lack of auditor independence,in view of the problem this paper argues that risk-oriented internal auditing has the feasibility and necessity,on the basis of combination of ERM comprehensive risk management and the evaluation of the CSA overall control,the characteristics of perfect,including risk assessment,coordinate,Xiangtan steel's risk-oriented internal auditing process design,in order to meet domestic iron and steel enterprises of modern internal audit system,Strengthen the prominent position of risk-oriented internal audit in the actual operation of enterprises.