Research On Internal Audit Of A Group Co.,Ltd

With the continuous development of Chinese enterprises and the continuous changes in their organizational forms,people have gradually realized the importance of internal audit in the development of enterprises,especially for group companies.The characteristics of multiple levels and wide industry involvement determine that enterprises will face numerous risks while having growth opportunities.Therefore,having a scientifically sound internal audit system is essential for a mature enterprise.However,the current development of internal audit theory and practice in China is not balanced.In recent years,the concept of strategic oriented internal audit has entered people’s vision,but in practical work,the internal audit construction of many enterprises is still relatively backward.In addition,in the past,China learned from the excellent experience of internal auditing in Western countries,but with the reform of Chinese enterprises,it is now necessary to have an internal auditing system that is more in line with China’s own characteristics.The research object of this article,A Group Co.,Ltd.(hereinafter referred to as A Group),is wholly-owned by state-owned capital and has a development history of 50 years.However,with the merger,restructuring,state-owned enterprise restructuring,etc.during the group’s development process,A Group,which should have made steady progress,has frequently encountered risk events in recent years,all of which reflect the lack of internal audit.In this context,it is necessary to improve the internal audit construction of A Group.In addition,as a state-owned group enterprise,Group A’s management model and institutional construction can reflect the characteristics of Chinese enterprises,so choosing it as the case study object is of great significance.This article first reviews and organizes existing literature to gain a deeper understanding of theoretical knowledge,and then participates in the internal audit work of Group A.Due to the numerous secondary enterprises within the group,in order to comprehensively understand the current internal audit situation of Group A,this article adopts multiple case studies and organizes typical events of multiple secondary enterprises as specific cases.Through practical work summary,it has been found that the prominent problem of its internal audit is not knowing when to conduct the audit and what content to audit.Therefore,this article attempts to promote a strategic risk oriented internal audit system starting from organizational strategy to improve the internal audit construction of Group A.This article constructs two internal audit models based on the theories of strategy and risk,and brings the previously organized cases to the model for case analysis.It identifies several main reasons for the problems in Group A’s internal audit,including the lack of strategic planning in internal audit work,unclear positioning of internal audit functions,defects in internal audit processes,and excessive reliance on external audit.Finally,some improvement measures were proposed to address these issues,including using the previously constructed model to clarify when and what content should be audited,establishing a virtuous cycle of internal audit processes,and accelerating the use of digital and intelligent means.Through the above research,it has been found that:(1)The internal audit construction of group companies needs to be combined with corporate strategy;(2)The combination of internal audit and strategy can be achieved by constructing a strategic risk oriented audit model,which is both an analysis tool and a solution;(3)In order to improve the efficiency and effectiveness of internal audit work,it is necessary to ensure that the internal audit workflow can form a closed loop.