On the risk-oriented audit the impact on corporate governance net _ to write papers

Write papers network: [Abstract] more and more risk-oriented audit to promote, and this company also had an impact on the face of new circumstances of the audit situation, how to do more and more, including corporate governance, management , academics and other sectors of interest. This paper studies the risk-oriented audit in China have developed to analyze the risk-oriented audit of corporate governance have for the impact of internal control and internal audit, including two implications for how risk-oriented audit the trend of good corporate governance, a number of recommendations.

[Keywords] internal audit of internal control risk-oriented corporate governance, audit

Risk-oriented audit with the United States of Enron and Worldcom scandals series of major fraud and audit failures of the development so far has been more and more countries and regions adopted a policy to develop the basic ideas of the audit. Also, because of its close relationship with corporate governance, since its effect on the corporate governance has a significant impact and influence the choice of the company's financial systems and accounting information disclosure.

A risk-oriented audit
Risk-oriented audit produced in the 1960s, its accounting statements involve inherent risks and economic activity for the quantitative assessment of control risk, according to the level of assessment, consideration should be the implementation of testing procedures and sampling techniques, in order to control the risk of audit checks, and finally the overall audit risk to achieve control of the target.

Risk-based audit of the epoch-making role is reflected in two aspects.

First, the allocation of resources to solve the problem in the traditional audit, audit the allocation of resources there is a certain arbitrariness, and risk-oriented audit allows the auditor based on the assessment results will most likely lead to the allocation of resources to areas of risk of material misstatement .

Second, enhanced risk-based audit of the scientific sampling techniques, to overcome the previous sampling techniques adopted by the randomness.

Second, risk-oriented audit for the impact of corporate governance
1 For the impact of internal control
First, the internal control system design more perfect. The first is an authorization system of internal control systems and systems of accountability, as modern types of organization-level and more complex structure, and thus the design of internal control audits in the past, not taken seriously, but with the development of risk-oriented audit, internal control how good or bad for the increasing influence of corporate governance, so the design has also been with the company's auditors double attention by previous special department responsible for internal control, internal control and even change a mere formality as the importance of corporate governance , the sub-duty, clear to the people.

Second, the implementation of more stringent internal controls. By audit resources, audit environment and a variety of factors, led to the previous audit, the auditor is only concerned with and can only focus on the evaluation of internal control, and for its review of the implementation by certain restrictions, which directly led to the implementation of the internal control system has been compromised in practice, even if it is a sound internal control system, if it can not be strictly enforced and can only be plenty of its form, but can not really achieve the internal control purposes, while the risk-oriented audit because of all to control the business risk of the most fundamental starting point and ultimate goal of easing the auditing and management of the confrontation between, so the implementation of internal controls to be reviewed, and because internal control for corporate governance, the impact of enhanced management layer itself perform the requirements more stringent.

2 for the impact of internal audit
According to <<internal auditing standards>> definition of internal audit is "through the application of systematic, disciplined approach to evaluate and improve risk management, control and governance process is more effective to help the organization achieve its day mark."
The risk-oriented audit, internal audit because of its board of directors, management's objectives, in addition to the efficiency and effectiveness of internal control evaluation, but will also promote the improvement of internal controls to help organizations find, and risk factors highlight improvements to ensure that audit objectives with the company's development goals. Specific impacts include the following three aspects.

First, changes in the concept of internal audit in the past, the company, the internal audit and corporate governance institutions are independent, because the different purposes lead to the company's management and internal audit potential exists between the antagonistic relationship, which not only makes the internal audit of the audit environment is not good, and lead to obtain audit evidence and draw and perform the audit opinion is subject to certain restrictions.

In the risk-oriented audit request, the enterprise risk management into the company's management and internal audit common goal, which directly affects the concept of changing the internal audit work the new notion of internal audit to work closely with management, external audit can not reflect alternative functions for the management to play the advantage of familiar and better achieve the internal audit and corporate governance purposes.

Second, the scope of internal audit changes the traditional focus on internal audit observation, calculation and re-enforcement programs, some designed for internal control and verification operations, while the risk-oriented audit not only focus on the past, are more concerned about the future, will expand the scope of the audit and corporate governance and risk up to control the height of the strategic planning, performance appraisal, financial analysis, etc. together, better for business value. Links to free download http://www.hi138. com
Third, the internal audit opinion changes the traditional internal audit is more emphasis on the purely positive or negative for the company's internal control, account management for the company, the company operating the system of monitoring and evaluation report, but the risk-oriented control , the internal audit opinion on the units they are responsible not only to report, but also to exchange views with the management, timely communication, requires management to manage the residual risk for, or assist management to improve risk management measures.

Third, risk-oriented audit recommendations under good corporate governance
1 change their ideas, focusing on risk management
Companies in which the economic environment and rapidly changing market environment, the company's stated objectives can be achieved, the company's business strategy successful implementation of the company's ability to continuously improve management performance is not only independent of things, but on the big to consider the context of the environment, while considering a wide range, the business risk identification, assessment, analysis and response becomes more and more important, which is also an important change in audit-oriented reasons.

(2) improve the status of internal audit, internal audit role into full play
Internal audit in enterprise management is very important, but also very special place on the one hand, it is the company's part, on the other hand plays the role of evaluation company in risk-oriented audit, internal audit and corporate governance is in line with potential demand, but the current management of internal audit, internal audit section in parallel with other departments, direct impact on the internal audit role to play, but can not play the role of risk management, so smooth internal audit and corporate person in charge of communication channels, improve the status of internal audit, the modern corporate governance trends in risk-oriented audit under the only way.

3 focus on personnel selection, regulate the internal management
Risk-oriented audit is no longer a simple, passive troubleshooting investigations and disadvantages, but more to business strategy is not marked as a starting point, in-depth to determine on the basis of corporate risk, evaluate and confirm the audit focused, and finally made the corporate governance opinion, while this change for the quality of internal audit staff have higher requirements, but also requires companies to choose the internal audit staff for key positions and other management to be more cautious.

After choosing the right people, but also for internal control and internal audit system for further requirements, learn the advanced experience of corporate governance, improve internal management, a better response to risk-oriented audit the best choice.

References
[1] Zhang virtue: to comply with auditing standards is to enhance audit quality assurance results [J]. Shanghai audit, 2009 (2)
[2] Hao Li: risk-oriented audit challenges for internal audit [J]. Modern Audit and Economy, 2009 (3) Links to free download http://www.hi138.com