Discussion On The Application Of Internal Audit In Nuclear Power Enterprises

On December 11,2017,China institute of internal audit held a symposium in Beijing on the theme of "Learning,Publicizing and Implementing the Nineteen Spirits and Opening a New Situation of Internal Audit Development in an Innovative Era".Vice President and Secretary General of china institute of internal audit Bao Guoming presided over the meeting.The 12 leaders of the internal audit department of state-owned enterprises attending the meeting focused on the spiritual essence and practical requirements of Xi Jinping’s new era of socialism with Chinese characteristics.They made many suggestions,analyzed the new situation and new requirements faced by internal audit,and discussed the new goals and new tasks for the development of internal audit in the next step.Xiao Wei,the chief auditor of the Bank of China Limited,made a speech in which he pointed out that internal audit faces new situations,new tasks and new requirements.First,the internal audit requires a higher position.Second,the internal audit faces more challenges.Third,the internal audit has greater responsibilities.Under the new situation,the development thinking of internal audit is: under the guidance of the party’s 19 major spirits,closely surrounding the company’s strategic objectives and business priorities,adhering to the working concept of "supervision as the core,problem-oriented,value-added for the purpose,and science and technology as the guide",comprehensively strengthening the construction of audit professional ability,scientific and technological means,and personnel team,keeping in mind the audit mission,earnestly performing the core responsibilities,continuously serving the construction and improvement of the company’s risk management and internal governance,and continuously enhancing the value contribution and influence of internal audit work in the company.Internal auditing has developed for 60 to 70 years in the west,and the auditing method has changed greatly every ten years.The development of internal audit has undergone tremendous changes from lower-level accounting quantity inspection to higher-level assurance and consulting services,from the amount of audit quantity to the risks of audit strategy.The highest organization of internal audit is the International Institute of Internal Auditors(IIA),which was established on September 23,1941.The motto of IIA is to share experiences and make common progress.Its strategic goal is to improve the image of internal audit worldwide.The IIA Global Strategic Plan2012-2016 clearly states that the core purpose of IIA is to enhance the internal auditprofession and its global value.Teamwork,courage to practice,diversity of work,global perspective and innovation awareness,integrity and quality,and quality service are the core values of IIA.Internal audit is considered as an indispensable part of effective governance,risk management and internal control in the world,and is IIA’s big target for the next 10-15 years.However,compared with other professions,China’s internal audit is still a very young profession,and it will take 30 to 40 years for it to take root and develop in China.During these 30 to 40 years,China’s internal audit has generally gone through three stages of development: the first stage is financial compliance audit,the second stage is to gradually carry out benefit audit based on financial compliance audit,and the third stage is to gradually shift from financial audit to management benefit and risk audit.It will take 30 to 40 years for China’s internal audit to learn,digest and complete the 60 to70 years’ journey in western countries,and the complexity and hardships involved can be imagined.In recent years,many small and medium-sized enterprises and new group companies have tried to establish internal audit institutions and carry out internal audit work.However,due to the limited audit resources the company can provide,the lack of independence of the audit institutions,the insufficient technical level of the auditors,and the backward audit concept of the company as a whole,their work results are not good and they cannot help the management to improve the corporate governance.Internal audit develops with the development of economy,so only large enterprises and group companies have enough capital to provide strong support for the development of internal audit.CGN Group is one of the major nuclear power enterprises in our country.It belongs to a very large enterprise group and is also one of the enterprises that explored the field of internal audit earlier in our country.Up to now,CGN Group’s internal audit has developed into a mature one.Its internal audit institutions have high independence and perform the functions of supervision,evaluation and consultation in the three fields of risk management,internal control and corporate governance,thus pushing CGN Group to achieve higher value.Based on the concept of internal audit and relevant theoretical results at home and abroad,we have started with the specific business of CGN Group’s internal audit,and have a thorough understanding of the audit points and main measures of CGN Group’s internal audit in the aspects of procurement business,engineering projects,accounts receivable,fixed assets,costs and expenses,corporate strategy and subsidiary governance.We have analyzed and concluded that CGN Group’s internal audit has strengthened the riskcontrol of procurement activities,and ensured the quality and capital safety of engineering projects.It has improved the management of accounts receivable,promoted the maintenance and appreciation of state-owned assets,improved the profitability of the company,optimized the allocation of resources,guided the company in the right direction of development,and confirmed the effectiveness of CGN Group’s internal audit.According to its successful experience in internal audit,the conclusion is drawn:CGN Group has a relatively perfect internal audit mechanism,and its application effect is remarkable,which has great reference value in the industry.It also summarizes the methods for other enterprises,especially nuclear power enterprises,to improve their internal audit effectiveness: to further improve the internal audit mechanism,to further broaden the scope of internal audit,to continuously improve internal audit techniques and methods,and to gradually improve the comprehensive quality of internal auditors.Through the exploration of CGN Group’s internal audit work,on the one hand,it can help internal audit to carry out effective publicity in China and encourage domestic enterprises to attach importance to internal audit work;On the other hand,more enterprise groups and experts and scholars can also participate in the research of internal audit-related issues to discuss the new objectives,new tasks and new values of internal audit,so as to make it have more connotation of keeping pace with the times and broader development prospects.