The Discussion On The Application Of The Vale-added Internal Audit In ZH Group

In April 2015,the Institute of Internal Auditors' annual meeting of the Whole Committee opened in the capital of China-Beijing.After the meeting,Yu Xiaoming,president of China Institute of Internal Audit,in an interview with reporters expressed the function of internal audit,he thought that the internal audit work in China must be clear about its role and location in the organizational governance structure.It should focus on the center and grasp the key points,and actively play the role of the "third line of defense" and "immune system".Internal audit can promote the implementation of all major measures from top to bottom through the implementation of strategic objectives of audit organizations,and promote top level strategic decisions and major measures in place.Internal audit can also track the core business and key links of the organization in the whole process,timely reveal risks and eliminate hidden dangers,so as to improve their risk prevention capabilities.In addition,internal audit or an important system design in internal control system,it is not only an internal control practice,played a good role of internal supervision and restriction,and is an internal control "agents",to promote the internal control system with the development of the organization continues to improve and perfect.In general,the battlefield of internal audit is all over all aspects of the enterprise's production and operation activities,and it is one of the leading soldiers to improve the value of the enterprise.However,in fact,the development of internal audit in China is relatively backward compared with foreign countries,and it is developed on the basis of national audit.Most private enterprises and state-owned enterprises still focus on financial audit and outgoing audit in the application process,which is far from enough in risk analysis and response,improvement of organization governance and optimization of internal control.Many enterprises try to carry out value-added internal audit,but also because of limited audit resources,single audit technology and weak sense of value-added,their value added function is not good enough,and it doesn't play a role of value-added demand for internal audit of Chinese enterprises.Is there a suitable soil for value-added internal audit in China? We can get some answers in the case of the ZH group's value-added internal audit.ZH group is a national large-scale enterprise established in accordance with the modern enterprise system,internal audit plays an important role in the corporate governance structure,based on thepremise of high independence in all areas under execution supervision,evaluation and consulting and other service functions,efforts to promote the enterprises to achieve a higher value.Combined with the value-added internal audit concept and the related theories,we from the ZH group's internal audit organization,in three major areas of work of value-added internal audit in the enterprise is how to work and study in large state-owned enterprises,through analyzing the details of ZH group's internal audit and its achievements,we realized the causes from the perspectives of audit strategy,audit mode,personnel training,information technology and quality control.Therefore we concluded that: Value-added internal audit work pays attention to the advance of the audit pass;value-added internal audit can improve the management level and social benefit of the enterprise;audit product marketing is the internal demand of value-added internal audit.In the same time,we can get some useful experience and enlightenment to the other enterprises about the value-added internal audit from the analysis of ZH Group: First of all,establish a perfect internal audit mechanism;secondly,establish the related facilities;thirdly,formulate relevant audit techniques and methods;finally,quality control is necessary.Through the application discussion of value-added internal audit in ZH group,it can not only be an effective promotion of internal audit value-added,to encourage enterprises to set up the idea of value added internal audit department;but also provides a certain reference value for enterprises,especially state-owned enterprises,to find out that how to carry out the work of value-added internal audit.At the end,I hope this research can inspire more and more enterprises and individuals devote themselves to the research of value-added internal audit,work on improving the operation mechanism to make an effective development of internal audit in practice.