A Study On The Application Of Risk-oriented Internal Audit In Construction Enterprises

As China’s economy enters a new normal and the overheated investment cools down,the market environment faced by construction companies has changed drastically from the past,and market competition has intensified.On the other hand,the gradual deepening of comprehensively governing the country according to law makes construction companies no longer able to operate in accordance with the previous extensive management model.A comprehensive risk management system helps companies achieve their strategic goals more steadily and quickly,and is regarded by a large number of construction companies as a key direction for corporate management improvement.As an important supplement to the system,risk-oriented internal audit helps internal auditors identify risks and determine audit priorities,which further enhances the performance of internal audit and makes the risk management system more complete.The application of risk-oriented internal audit has become a question worth considering for thousands of construction companies in my country.In order to explore the effective methods for construction service companies to strengthen risk management and enhance the value-added effect of internal audit,this article focuses on answering three questions: whether risk-oriented internal audit is available and necessary in construction companies;construction companies under traditional management systems What obstacles may be encountered when using risk-oriented internal audit;Explore the path of successful application of riskoriented internal audit.This article first analyzes the applicability of risk-oriented internal audit for construction companies from the perspective of theoretical analysis based on the principal-agent theory,strategic management theory,and enterprise reengineering theory.At the same time,it illustrates the necessity from the perspective of the internal and external environment of the enterprise.Afterwards,a case analysis was carried out in combination with the application examples of CT Construction Company in the two stages of system-based internal audit and risk-oriented internal audit.It is found that there are inherent defects in the application of system-based internal audit in construction enterprises.The introduction of risk-oriented internal audit can achieve better improvement,but in actual use,there may be a series of obstacles that can not meet expectations,responding to the previous article about Applicability and necessity analysis.Finally,this article analyzes these obstacles,and puts forward a series of suggestions such as improving the risk management system,improving personnel quality,and establishing an internal audit quality control system,and constructed a reasonable path for applying risk-oriented internal audit.The main contributions of this article are: First,it analyzes the adaptability of risk-oriented internal audit in the construction services industry,broadens the theoretical research related to risk-oriented internal audit;second,explores the main methods of applying risk-oriented internal audit To accumulate experience in application of risk-oriented internal audit;third,focus on analyzing the obstacles that construction companies may encounter in the application of risk-oriented internal audit,and provide recommendations from the perspective of enterprise management based on the analysis results.Limited by the source of the data and the method of research,the main flaw of this conclusion is that the practicality of the management recommendation conclusion may be lacking,and at the same time,it has failed to construct a specific method of risk assessment.