Discussion On Risk-oriented Internal Audit Of JX Construction Company

With the development of Chinese social economy,the company's livelihood and growth are facing great risks in the fiercely competitive market.Risk-oriented internal audit is a new thinking mode of audit,which improves the deficiencies of internal audit to a certain extent.Integrating the business objectives of the company and taking risk as the orientation,it evaluates the risk management,internal control and governance procedures of the company,and then puts forward constructive Suggestions and Suggestions to realize the value-added of the company.From the perspective of theory and practice,this paper mainly adopts case analysis method to systematically explain the concept,characteristics,basic procedures,constraints and theoretical basis of risk-oriented internal audit.Based on the theoretical results of existing studies,combined with the implementation of risk-oriented internal audit in JX construction company,this paper studies and analyzes the existing problems and causes,and the countermeasures were given,which provided basic materials for relevant studies.This paper consists of six parts.Parts 2 through 5 are the key chapters except introduction and conclusion.The second part is the theoretical overview of risk-oriented internal audit,which systematically introduces the concept,characteristics,basic procedures,constraints and theoretical basis of risk-oriented internal audit.This paper expounds the concept of risk-oriented internal audit from its meaning,object and target,and summarizes the three characteristics of risk-oriented internal audit,which taking risk assessment as the core,promoting enterprise value increment and combining with enterprise goals closely.Risk-oriented internal audit includes risk assessment procedures,control testing,and substantive procedures,and is constrained by independence,objectivity,and the professional competence of the internal auditor.Finally,it introduces the theories of corporate governance,internal control,risk management and corporate strategies to analyze the theoretical foundation of risk-oriented internal audit.The third part is the case introduction of JX construction company,which mainly includes the introduction of JX construction company,audit overview,audit process and problems existing in the risk-oriented internal audit.Through analyzing the current situation about it,it is found that the content of risk assessment is not comprehensive,management intervened the arrangement of audit team members,competence of internal auditors is inadequate,the efficiency is low and the timeliness is not strong in the risk-oriented internal audit of JX construction company.The fourth part is the causal analysis of the risk-oriented internal audit of JX construction company.The first is the lack of attention to risk in the whole process of risk-oriented internal audit,mainly including the weak risk awareness of internal auditors,the imperfect risk information database,the difficulty in quantifying and evaluating risks,and the failure to select audit projects according to the degree of risk.Secondly,the independence of risk-oriented internal audit is insufficient,including the weak independence of internal audit organization,weak independence of economy and weak independence in work.Thirdly,the risk-oriented internal audit personnel selection and training mechanism is not perfect,mainly the personnel selection system is not reasonable and the training mechanism is not perfect.Fourthly,the risk-oriented internal audit technology means are backward,including the introduction of internal audit information technology is not comprehensive,internal audit over-reliance on traditional audit techniques.Fifthly,the risk-oriented internal audit lacks effective assessment of reward and punishment mechanism,including the internal audit assessment mechanism is a mere formality,and the internal auditor's reward and punishment mechanism is not implemented effectively.The fifth part is aimed at the causes of the problems in the risk-oriented internal audit of JX construction company,and provides relevant countermeasures,so as to make the risk-oriented internal audit play a more effective role to realize the purpose of adding the company's value.Firstly,pay more attention to risks in the whole process of risk-oriented internal audit.By strengthening the risk awareness of internal auditors,we can improve the risk assessment information database,optimize the risk assessment method,and select audit projects to realize according to the risk degree.The second is to enhance the authority of the risk-oriented internal audit,clarify its functional positioning and improve its independence to make its working environment well.Thirdly,to strengthen the risk-oriented quality training of internal auditors,we can reasonably set up the selection system,establish and improve the training mechanism,and encourage them to exchange experience.The fourth is to improve the risk-oriented internal audit technology means of the company,which can improve the information technology platform of internal audit,implement the new technology of off-site network audit,and actively adopt the big data audit technology.Fifthly,we can establish an effective risk-oriented internal audit evaluation to reward and punish mechanism,optimize the audit project evaluation method,and implement the reward and punishment mechanism of auditors.Through the analysis of the risk-oriented internal audit of JX construction company,this paper explores new ways and methods to improves its audit efficiency and effect,in an attempt to provide theoretical support for risk-oriented internal audit.And at the same time,we promotes the implementation of risk-oriented internal audit in construction company.