Integrated Audit Process Design

Since 21 st century,the issue that the enterprise internal control system construction is not standardized and comprehensive was neglect by management layer so that Enron Incident,the Case of MCI WorldCom Accounting Fraud,and Olympus Inflated Assets have been successively broken out.All of these undoubtedly revealed the lack of internal control causing enterprises' huge loophole.Therefore,in particular,the United States has promulgated “the Sarbanes-Oxley Act”,billed as "Investor Protection Act for Listed Companies",and put the enforcement of internal control audits on the "agenda".The Act has been unanimously recognized by the international community;for the first time,it has proposed an "integrated audit" that combines financial statement audits with internal control audits.The two audit supplementary guidelines,Auditing Standard No.2 and Auditing Standard No.5,were subsequently promulgated to guide the integration of audit practices.In order to integrate with international auditing standards,China also issued the "Guidelines on Internal Control Norms" in May 2008,and it stipulates that listed companies must start to establish and improve the internal control rules and regulations of enterprises,and an internal control self-evaluation system.At the same time,a report is issued through the CPA auditing.Since then,China has also entered into the times of compulsory audit and compulsory disclosure of audit business.It also laid the legal foundation for the development of integrated audit in China.However,integrated audit has been developing in China for nearly ten years.Since 2009,China has not issued any prescriptive guidelines for the integrating the audit industry,so the integration process is only a simple mechanical addition of the two business,and not highlight the emphasis on the construction of internal control system in the guidelines.The integration of audit subjective arbitrariness is also strong,and the practice also has a low efficiency,the unsatisfactory audit effect,too.Therefore,this paper starts with the problems existing in the integration audit practice.By enumerating the problems existing in the practice of integrated audit industry,after introducing the advantages of the theory of integrated audit,the reasons for the separation of theory and practice are analyzed,and a set of processes are designed again to solve the irregularities existing in practice.Then,taking the business process of sales and collection cycle as an example,this paper introduces the integrated audit process of Jia Waugh's shares.Furthermore,the specific problems of the integrated audit business are demonstrated in detail,and the integration process is redesigned.Finally,this paper puts forward the outstanding characteristics of the design,and three aspects are started from strengthening the implementation of roll forward audit methodology,rectifying and reforming of the integrated audit's defect,and the use of enterprise ERP system and integrated audit information technology.So far,in the new stage of integrated audit development in China,a new integration process has been proposed.It is hoped that the theoretical expansion will guide the practice and strengthen the integration with practice.