About Enterprise Group Internal Audit Work

Abstract: The Enterprise Group has been the focus of the internal audit of the financial revenues and expenditures from the original term of office of responsibility for audit and audit of operational efficiency and risk into the audit. Article from the perspective of Enterprise Group, an organization for internal audit, internal audit functions and the work required concerns in depth mining and sorting, put forward the improvement of targeted advice and ideas.

Audit and supervision mechanisms for sound management of the enterprise group an integral pArt. As the focus gradually Enterprise Group Management to operational efficiency, risk prevention, internal audit function should also focus on the financial revenue and expenditure from the original term of office of audit and audit responsibilities benefits and risks of the operation into the audit, the audit from the original post things gradually changed, the prior audit. This point of view from the Enterprise Group, for the internal audit organization, the work of internal audit functions and the issues that need attention that need further thought.

First, the business group internal audit organization located in the business development of internal audit work for a long period of time, internal audit is a very awkward position, the internal audit depArtment should not be endowed position and duties, separated from the main business enterprises management activities, like the doctor, not to the point, as business can not accurately grasp the lifeline of practical issues and recommendations raised. Meanwhile, the work of internal audit, the audited object's terminals are attached to a top leadership, the audit difficulties and obstacles in the process is conceivable. As the socialist market economic system gradually improved and the new company law, securities law, the implementation of internal corporate governance structure of corporate continuous improvement, internal audit organizations need to re-positioning and adjustment its work by the board or under the direct leadership of the Audit Committee, Internal Audit DepArtment reports regularly to the Board the work, the case of major problems can be reported directly to the chairman of the board. so, to ensure that the internal audit depArtment and personnel independent of the operating management, to be independent, objective and impartial performance of the audit functions; also business management audit identified problems, the proposed improvements can not neglect.

Second, corporate internal audit function as the business continues to expand the scale of investment groups, business risk increases, the scope of the internal audit function is no longer simply defined as "financial audit" and "term of responsibility audit", has been extended to financial revenue and expenditure audit, economic audit, investment feasibility evaluation of audit, management audit infrastructure projects and budget management, assessment audit. can be said that the tentacles of the internal audit has been extended to internal operation and management of all aspects of .1. business leaders the economic term responsibility audit. Audit Commission in 1986 and 1999 introduced a <"On the outgoing director to carry out the work of several issues of economic responsibility audit notice>", "<state-owned enterprises and state holding enterprises leaders Interim term economic responsibility audit >>, prompting the state-owned enterprises have set up an internal audit agency, which is the internal audit function of early enterprise group mainly located in the leaders of the causes of economic responsibility audit period. term economic responsibility audit is on business leaders during his tenure in charge of the financial unit real income and expenditure activities, legal and benefits, and business leaders to fulfill personal financial responsibility, financial discipline and self-discipline to comply with the inspection and evaluation, the results of the organization and personnel departments to inspect the cadres, assessment, evaluation, appointment and reward and punishment an important basis for cash. It should be noted that the audit should leave before the expiry of the leading cadres, but in the real work, "After the first trial from the" "first as after the trial" is widespread, and organizational and personnel are often not on the interface. If the leave without trial, will be unclear, the loss will not be held responsible; if asked to leave after the trial, it will lead to the departure of the lack of binding, tend to make the audit a mere formality. Thus, strictly from the The timing of any audit is to improve the leadership term economic responsibility audit mechanism, and enhance the authority and economic responsibility audit period the important work of binding .2. financial security and capital efficiency audit. With the increased financial risk, financial security deposit has become the focus of internal audit. However, the current situation of capital management, financial management, emphasis on safety and therefore did not act, the problem seems to ignore the financial benefits become more prominent. Therefore, the internal audit should be to promote the business value of productivity gains for capital storage, flow, efficiency review, the operating efficiency of financial security audit and audit together, especially to strengthen the decision-making mistakes, mismanagement and the loss of state assets losses and other issues of review and improve funding for capital security efficiency in the use .3. infrastructural projects track the audit. infrastructural projects track the audit is a budget for infrastructure projects, bidding, construction, completion and final accounts, the whole process of monitoring and auditing, is different from the static ex post audit. First, the internal audit staff from the beginning a comprehensive understanding of construction drawings and construction process on the project, directly involved in project bidding, estimates, acceptance, accounts, review compliance with national norms construction; Second, the reasons for changes in engineering design, rationality and is wasteful in areas such as testing; Third, we must regularly supervise and inspect the quality of materials and ratio, is in strict conformity with the requirements of design and quality. so that the process of project implementation problems identified can be disposed The auditor will have learned first-hand information on construction, engineering audit of the accounts in order to further lay the foundation for .4. budget management and performance evaluation audit. overall budget management and performance evaluation has become the focus of group management, business Group Internal Audit should serve the budget management and performance evaluation. on the audit of budget management principles including budget management, budget control mechanisms, budget management organization system and the preparation, implementation, adjustment, analysis, assessment and other all-round, the whole process audit. because of the annual salary of enterprise managers and agencies linked to performance evaluation phase, driven by the interests of the affected companies may be assessing the carrying cost, profit for the "processing" so that the profit loss of objectivity of the book, which operate in all units especially on the profit performance of the authenticity of the audit to be necessary. On the other hand, corporate profits, one-sided pursuit of non-performing assets may be overlooked digestion, increase operational hidden losses, so the internal audit should also focus on the quality of the audit of enterprise assets, and promote management of bad assets, reducing hidden losses, asset quality .5. investment feasibility and risk assessment audits. Enterprise Group's investment management is an important work, but there is also the problem of weak management, especially in the pre-investment projects feasibility analysis, there is only focus on technical feasibility analysis, ignoring the tendency of economic and risk assessment. To promote the preservation and appreciation of assets, the internal audit work should strengthen the supervision of the whole process of investment, in particular, is to strengthen the economic and risk assessment to evaluate the actual investment income, investment experience and lessons learned summary, to investment before, during and after the control results. should also be strict accountability system, the audit found due to poor decisions, poor management and serious losses of state assets loss and other issues, the employees responsible should be held responsible. reposted elsewhere in the Research Papers Download http://www.hi138.com Third, corporate internal audit work should pay attention to several issues
1. Internal audit should focus on internal control and business risk management. As the contents of the internal audit to operation by the financial audit and internal audit's focus began working to improve management efficiency and increase profits on such a constructive audit, internal control and Enterprise risk management has become the focus of internal audit work was. internal audit work should use professional knowledge and experience, focusing on auditing internal control system was the understanding of internal control and monitoring of implementation of major business risk assessment . ie: to the internal control mechanism and risk management system is perfect for inspection, evaluation, advice and supervise the improve. to the company's overall business objectives, processes, quality and risk audit and evaluation, according to the size of the risk, the use of advanced network technology and information processing technology, the risk of the business dynamic, real-time identification and monitoring, so that gradually the internal audit risk from the management to ensure protection to the shift from passive to solve problems that matter to the recommendations of changes to achieve the overall objectives of Enterprise Group Services .2. focus on internal audit process to communicate with the unit being audited. Although audit requires auditors to be independent, objective and fair, but does not rule out the auditors and the audited entity to establish a good working relationship with each other to strengthen collaboration and cooperation, and communication is an important means of implementing this process. First, communication can enhance mutual understanding, is conducive to the smooth progress of audit work. The auditor and the audited entity often due to the position in which the different managers, the lack of consensus which led to the audited units appear uncooperative attitude, so the audit work in a disadvantaged situation, through communication, both sides can find their own position, clearly aware of their responsibilities and obligations, bringing the two sides more active in their respective duties. Second communication can improve work efficiency, and ensure audit quality. the different nature of the business units to be audited, operations and business risk is different. appropriate communication, internal audit found that the audit trail helps to identify the key issues; can to some extent to avoid generalization, assuming analyze problems; help auditors complex and difficult to correctly analyze issues, make reasonable judgments, the audit for risk reduction. Third, the communication audit observations and recommendations in favor implementation and rectification. in the audit process of implementation, the auditor will often find that the audited entity in the internal control, operation and management problems with the communication unit being audited to obtain the trust of the audited units to enable them by the passive acceptance to active cooperation, thus contributing to the implementation of audit observations and recommendations. communication in the audit should note the following: the beginning of the audit, the audit department should be the attitude of holding trust, discuss with them the purpose of the audit, audit content and audit procedures to be taken and the methods to obtain their understanding and support; to seek the views of the audited units, in a timely manner with the parties to discuss the problems found in the audit, the need for improved joint analysis and to explore possible measures for improvement; will be one of problems found to inform the auditee informally to resolve the problem locally in time to avoid greater losses .3. should make management recommendations for the audited entity to provide value-added services. that the issue was not the internal audit unit the only purpose of the audit. internal audit department and the audited entity in the same organization, their goals are essentially the same, an increase of value to the organization. Therefore, in formulating the audit plan, should be encouraged to submit their audited units concerned issues important to identify potential audit areas; in the audit process and focus on the audited units to maintain full audit issues related to communication, so that phase of the audit report, audit findings and recommendations to the manager concerned will not be completely surprised, but also increased the acceptance and implementation of audit recommendations by the possibility. In a final audit report, take a constructive tone, focusing on the causes and possible impact of the possibility of improving and improvement measures, the audited entity has taken corrective action should also be included in the audit report, the audit work to reflect their positive attitude .4. should strengthen the internal audit team building. modern internal audit work requires not only the work of the internal audit found the problem, it also required a solution, and thus professional internal audit staff have become increasingly demanding, generally considered as a qualified auditor must be: familiar with the accounting and auditing services; control of economic laws and regulations knowledge; understanding and knowledge of their overall operation, familiar with the business and risk control; understand and master the use of new technologies; have different levels with various departments and personnel exchanges and communication skills and ability. Therefore, the auditor should strengthen their theoretical study, do complex multi-skill talents, observed in the work culture sensitivity and solve complex problems problems.

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