Research On Improving The Quality And Effectiveness Of Internal Audit Work In The Enterprise-wide Risk Management Of Trust Companies

With the economic globalization and the rapid rise of economy,China's financial industry has made rapid and substantial development while a great deal of risk problems have been exposed,which puts forward higher requirements for the risk management of financial companies including trust companies.How to identify,evaluate and deal with risk has become a difficult and challenging problem faced by financial institutions,which has become a major research project with establishing and improving risk management system besides ensuring its effective operation.As one of the four pillars of China's financial industry,China's trust industry has the characteristics of wide scope of business,many types of business and fast innovation,while occurred a large number of risk events result from the lag of risk management of trust companies compared with business development since China's trust industry has entered a period of rapid development from 2007.As an important management tool of modern financial enterprises,internal audit is a significant constituent part of internal control and risk management of trust companies and it's of practical significance to actively explore implementation approaches through performing internal audit functions such as independent and objective assurance and consulting in the enterprise-wide risk management of trust companies.This paper takes PX Company,a leading and representative company in China's trust industry,as a case study and conduct in-depth study on the quality and effectiveness of internal audit in its enterprise-wide risk management with the method of combining theoretical analysis.Imprimis,this paper expounds the theoretical basis of enterprise-wide risk management,the concept,connotation,theoretical review of internal audit and the role of internal audit in enterprise-wide risk management;next in importance,it combs the functions and effectiveness of internal audit of trust companies in enterprise-wide risk management and the PX company's enterprise-wide risk management and internal audit work status especially revealing its structure and operation of internal audit system,combining the trust business operational characteristics together with the overview of risk management of trust companies;and this paper deeply studies and analyses the quality and effectiveness of PX company's internal audit related risk assurance,professional fraud response,consulting services and other functions besides summarizing the relevant deficiencies and reasons on the basis of the above;finally,this paper will put forward a plan to overcome the shortcomings mentioned above so as to improve the quality and effectiveness of internal audit in PX company's enterprise-wide risk management.Based on the industry leading and representative of PX company's enterprise-wide risk management and internal audit,the research results of this paper can be used for reference for other trust companies in China to improve the quality and effectiveness of internal audit in enterprise-wide risk management.