A Study On The Value And Mechanism Of Risk Oriented Internal Audit

Enterprises face the risk in the business and development process,having large or small risk.In China or foreign countries,there are many companies breaking down due to the risk,the United States Enron,WorldCom,BNP Paribas,China's Delong Group,LETV and other companies are unable to prevent major and fatal risk to break down,The past operating results in vain,they make people sign.With the continuous development of the world economy,the uncertainty faced by enterprises significantly increases,the corporate governance reform is started around the world,internal audit has also been pushed to the forefront of corporate risk management.In recent decades,the internal audit of foreign countries has been developing rapidly,especially the outstanding performance of internal audit department in WorldCom malpractices makes the value and role in the enterprise risk management be gradually recognized by the society;internal audit,the board of directors and senior management together become the three cornerstone of corporate governance,which is already the consensus.In China,the internal audit started late,and the integrated environment of domestic enterprises such as management level,governance philosophy,cultural values are more fragile,many domestic enterprises just take internal audit as a correction means,ignoring the roles of internal audit in the risk management,value management;resulting in internal audit in many enterprises has are poor independence,authority,and it is difficult to play.Therefore,how the internal audit to play the value and affect in the characteristics Chinese enterprises with different levels of governance becomes a worthy topic.In this paper uses the combination of theoretical research and case analysis to introduce the relevant theories of internal audit and risk management,introducing the reasons and ways of internal audit in risk management,analyzing the unique mechanism of internal audit in risk management.Then,based on the case analysis of Shenzhen Huijie Group Co.,Ltd.,this paper introduces the duty position,the value target,the mechanism and the working procedure of the risk-oriented internal audit mode,and combines the internal audit with the risk-oriented audit in the purchasing,commodity and sales of the company practical cases,fully demonstrates the effective way and value mechanism of internal audit in participating in risk management.Finally,through the risk-oriented internal audit in the risk management of higher value and the role of the ductility of thinking,to discuss and study the possible ways and means of making modern internal audit to be value-added in the current Chinese enterprises.The results of this paper have great significance and usefulness to understand and get rid of the obstacles,puzzles,enhance the internal audit value and promote the performance of internal audit responsibilities in the enterprise internal risk management.