Case Study Of J Power Company’s Internal Audit

In recent years,China’s state-owned enterprises gradually break away from the previous single property rights structure,single management mode and inefficient management mode,showing a diversified development trend in property rights structure,forming a unique governance structure and management mode.Under this background,the state-owned electric power industry has also broken away from the burden of history and carried out relevant restructuring and transformation,from the traditional natural monopoly situation to the formation of a market-oriented pattern centered on the five major central power groups and six directly affiliated central power generation groups.In the process of continuous marketization,power enterprises have established internal control system and internal audit system to meet the requirements of modern enterprise system and corporate governance.At the present stage,influenced by the national policy,market environment and other factors,the risks faced by power companies are becoming more and more diverse.Starting from the management and coping with these risks,internal audit work is also facing new concerns.However,due to long-term monopoly,the internal control and internal audit of power companies have the characteristics of late start and slow development.At the same time,under the limitation of traditional system,the two tasks of risk management and internal audit have not made a synergistic leap forward in many power companies.Therefore,power companies must consider how to optimize and improve internal audit.The research object of this paper is J Electric Power Company,as a holding company of the central enterprise,which has the characteristics of mixed property rights.After listing on the Shenzhen Stock Exchange,the company not only maintains its "state-owned" nature,but also realizes the socialization of capital.At the same time,J Electric Power Company is located in the three eastern provinces,and its operation and management status has a certain impact on other local power companies.Through understanding,J Electric Power Company’s internal audit work has achieved certain results,but there are also a series of problems,such as limited independence of internal audit,lack of internal audit force,backward audit means and so on.In view of the current internal audit situation of J Power Company,five kinds of suggestions are put forward accordingly,including improving the internal audit structure,building the internal audit team,updating the audit means,broadening the internal audit field and strengthening the application and supervision of audit results,in order to provide theoretical support and business reference for J Power Company.The innovation of this paper lies in sorting out the current audit process of J Electric Power Company,which is representative of four types,and choosing the audit work in 2017 to explain in detail.On this basis,it finds out the flaws in the internal audit work of J Electric Power Company,analyses the reasons,and puts forward appropriate suggestions for improvement.