Research On The Role Of Internal Audit

In recent years,financial fraud cases of listed companies occur frequently,and many investors suffer heavy losses,seriously damaging the integrity of the securities market.In particular,the increasing number of fraud cases of private listed enterprises make many investors more alert to the securities market.As one of the three major audits,internal audit can strengthen internal management and help enterprises to develop healthily and continuously.Modern internal audit is risk-oriented,through systematic and scientific audit methods to supervise and review the implementation of each business link,find out the potential fraud risk points,and put forward targeted countermeasures to prevent fraud.In particular,the Enron Incident and the Worldcom accounting fraud cases were led out of the fraud by the internal audit of enterprises.Therefore,it is particularly important to deeply analyze the role of internal audit in corporate financial fraud cases.In this paper,enterprise A is selected as the research object.As one of the top ten electric enterprises in domestic export volume,it is representative of the industry.Meanwhile,the company received the notice of administrative punishment on financial fraud from China securities regulatory commission in 2018.Therefore,this enterprise is representative of the research on the role of internal audit in financial fraud.This paper analyzes the means of financial fraud and the status quo of internal audit of enterprise A,and by referring to the mature experience of internal audit of enterprises in the same industry,and combining the idea of "finding problems--analyzing problems--solving problems",puts forward Suggestions for improvement of the problems and deficiencies in internal audit of this enterprise.On the basis of analyzing and commenting the relevant research results of internal audit function at home and abroad,this paper makes an in-depth study on the role of internal audit in preventing fraud by using risk management theory,internal control theory and metronome management theory.Combining with the financial fraud practices carried out by Enterprise A,the current situation of internal audit of enterprises is analyzed from two perspectives: unclear positioning of audit objectives,vague definition of scope,incomplete setting of audit procedures,insufficient competence of auditors and professionals,etc.,which have been implemented but not yet implemented;It is necessary tocarry out the non-implementation,such as failing to disclose the specific damage to the appropriate objects,and lacking of scientific and effective incentive mechanism.On this basis,it points out the factors that influence the internal audit of enterprise A from the internal and external aspects of the internal audit department,and draws lessons from the comparison with the internal audit of general electric group(hereinafter referred to as GE)in the United States.Finally,combined with the influencing factors and experience for reference,this paper puts forward corresponding Suggestions for A company in the aspects of audit objectives,audit scope positioning and audit procedures.Among them,the metronome management theory is introduced in the optimization Suggestions of audit procedures,and the innovative idea of using metronome management science to improve the audit procedures of enterprise A is conducive to improving the efficiency of audit work and improving the quality of audit.