Research On The Role And Realization Path Of Internal Audit In Enterprise Risk Management

With the increasing complexity of economic activities,operation risk factors are increasing.The uncertainty brings more severe challenges for enterprises to achieve their business targets.It is especially important for modern corporate to pay attention to the relationship between enterprise risk management and Internal audit.Since internal audit has been regarded as one of essential ways of controlling risks,it plays an increasingly vital part in risk control systems.More and more internal audit institutions are involved in enterprise risk management and regard it as a priority of internal audit.Participating in risk management and providing decision-making advice have been an important part of internal audit.The article is based on "The Role of Internal Audit in Corporate Governance and Management" issued by IIA and analysis the high combination between internal audit and risk management,which enables them to continuously reinforce each other in the process of operation.Meanwhile,internal audit can review and evaluate business activities to maintain and improve the efficiency and effectiveness of enterprise risk management and corporate governance.In addition,internal audit department plays a coordination role in the operation of the company and provide advice to the management.Therefore,in order to prevent and control risks more effectively,management should clarify the responsibilities of internal audit according to the size,complexity,scope of business activities and the risk profile of companies,which can make internal auditing help enterprises to realize added value.Firstly,on the basis of summarizing the theory of internal audit risk-based management,the conceptual framework of enterprise risk management and internal audit will be mentioned.Secondly,according to the relevant content of the internal audit's role in risk management"issued by the Institute of Internal Auditors,it is clarified that audit can play a vital role in advisory and consulting of risk management because of its independent and authoritative features.It is also proposed that internal audit should engage in risk management to optimize management's business activities and increase corporate core values.Thirdly,it further explores the function mechanism of internal audit in corporate risk management and elaborates how it works as confirmation and consulting role in corporate.Finally,taking the F company as an example,it will analysis the role of internal auditing in risk management and weaknesses.At the same time,put forward some policy recommendations,hoping to provide reference for the company to improve risk management and improve operation efficiency.In summary,internal audit can participate in enterprise risk management to make independent and objective evaluation of the company's business activities,playing the role of confirmation and consultation.It can also reduce the internal and external risk level of companies and improve the long-term development of them,which can bring many benefits to corporate management.This paper combines with case study to explore the role and implementation path of internal audit in risk management,and hope this article can provide a valuable reference for internal audit to play an important role in the coordination with risk management to achieve better implementation.