Exploration On The Value-Added Internal Audit Problems In The FD Company

With the development of economy and society and the increasing competition among companies,internal audit plays a growing significant role in governing corporate structure.As an important means of supervision to the management from the board of directors,although internal auditors do not directly participate in business activities,they can reduce losses in all aspects by identifying potential risks and making effective recommendations.In addition,internal audit can also play a deterrent role through various means of supervision to restrict the violations of the operators,and urge the management to diligently create better performance.In general,internal audit can both increase corporate value and decrease the risk generated in the business process.As an important supervisory mechanism in the organizational structure,in order to maintain its position in the organization,the necessity to develop internal audit to a new stage of value-added internal audit is self-evident.Based on the theory of fiduciary responsibility,risk management theory and value chain theory,this thesis takes FD as the research object to explore the value-added internal audit problems.With the combination of theoretical analysis and case analysis,as well as the guidance of the "Introduction-Theory Overview-The problems and reasons of the case company",the reasons why such problems would occur and what measures should be taken to curb those problems are put forward in this paper.Hopefully,through the analysis of the article,the development of value-added internal audit problems not only within the FD company but also in relevant industries would be positively bootedThe full text could be divided into six sections:The first part,the introduction.This chapter mainly expounds the basic research background and significance of the value-added internal audit.Through reviewing and analyzing value-added internal audit relative literature at home and abroad,the thesis carried on the preliminary summary as well as refining and put forward the basic framework of this article.The second part is about value-added internal audit theory.Compared with the internal audit in the traditional sense,this paper summarizes the theoretical basis of value-added internal audit,and introduces the meaning and main features of value-added internal audit from four aspects.In the third part,the research object of FD company is presented,and the overview of value-added internal audit to FD is stated.In the fourth part,this chapter puts forward certain problems in the value-added internal auditing process to FD from several aspects:(1)The audit results are not properly treated or further utilized;(2)the effect of Internal audit in governing corporate has not appeared yet;(3)The effect of internal audit in the operation of the company's internal control system is not satisfactory.(4)The scope of the company's value-added audit business is narrow.(5)The quality of personnel does not meet the value-added internal audit requirements.In view of the problems existing in the value-added internal audit of FD Company,the underlying reasons are mainly identified as follows:(1)The effectiveness of value-added internal audit supervision mechanism is imperfect(2)The management has insufficient understanding of the value-added value,and the internal audit culture of the audit company has not yet formed(3)The establishment of value-added internal audit institutions is unreasonable,lacking authority and independence(4)Value-added internal audit services have not extended to corporate governance(5)The overall quality of internal auditors is not up to the standard.In the fifth part,according to the problems existing in the value-added internal audit of FD company,from the research background and research significance of internal audit,the solutions to the problems are proposed:(1)Strengthen the full application of value-added internal audit results.(2)Establish scientific value-added internal audit concept(including building a value-added internal audit culture with company characteristics);improving management's understanding of value-added internal audit value-added functions(including improving the company's internal governance mechanism);establishing a unique audit service concept;strengthening communication with management;marketing internal audit.(3)Improve the value-added internal audit system(including improving the organizational positioning of the internal audit department);building a value-added internal audit culture with company characteristics;enhancing management's understanding of the value-added internal audit value-added functions and establishing the independence of value-added internal audit;(4)expanding the scope of internal audit value-added services(including active consulting services);strengthening corporate governance Value-added services in governance;reinforcing value-added services in the field of internal control.(5)Configuring the personnel composition as required to improve the quality of personnel.The sixth part,the conclusion.This part summarizes the main conclusions of this paper,and also points out the defects and deficiencies of this paper.