Research On The Improvement Of Internal Audit Of X Trust Company Based On Risk Orientation

With the increasingly complexity of internal and external financial markets,the competitive pressure and operating risks of trust companies are increasing.The traditional internal audit model can no longer meet the needs of the current development of trust companies.Risk-oriented internal audit embeds the considerations of organizational goals and risk management into the audit thinking and risk awareness is consistent throughout the audit work,which is conducive to trust companies' risk prevention and control.The introduction and development of risk-oriented internal audit is consistent with need of trust companies in high-risk environment.However,the application of risk-oriented auditing by trust companies is still at an exploratory stage.The concept has only been introduced and no standard system with guiding value has been formed and implemented.How to effectively carry out risk-oriented internal audit work and give full play to the role of the third line of internal audit defense is a problem that needs to be solved urgently.Based on risk-oriented internal audit theory,this paper conducts a case study of X Trust Company's internal audit.Firstly,risk-oriented internal audit's theoretical framework and implementation process are constructed.Than,this paper describes the profile of X Trust Company and internal auditing system,points out that the X Trust Company's problems on internal audit including:no risk assessment in audit plan,less review of risk management in implementation phase,audit reports lack risks response advice,follow-up audit did not reassess the residual risks,internal audit quality assessments lack risk indicators,institutional settings affect the role of internal audit in risk management and the audit resources fail to meet the need of risk-oriented model.Finally,this paper proposes seven suggestions:audit plan should focus on risk assessment,strengthens the review of risk management in the implementation stage,focuses on risk response recommendations in the audit report,reassessment of residual risks in follow-up audits,incorporates risk assessment capabilities into audit quality assessments,ensure the role of "supervisors" in risk management in internal audit and optimize the audit resources to meet the need of risk-oriented model.