The Importance of Internal Audit

8/10/2019 The Importance of Internal Audit

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The importance of internal audit

Internal audit is the audit supervision system is an important part of its role in no way inferior to

the external audit found that shocked the world premier hero "WorldCom" scandal is usually

not well-profile corporate internal audit staff, which further raises it concerns the internal audit,

how to strengthen the role of the internal audit function, strengthen internal control and risk

prevention has become a hot issue of the current discussion.

Internal Audit as an economic activity for a long time, with the continuous improvement of

social production of conduct and regulatory requirements, internal audit also experienced a

progressive approach, from simple to complex, from beginner to advanced development

process. Modern Western internal audit of financial and accounting issues are no longer

confined to the enterprise, their career horizons have been extended to all aspects of economic

management in the field of nearly four decades, with the internal audit activity extensive

development of modern internal audit functions and role, objectives and scope has been in the

evolving, and this change in continuing his wealth and expand the connotation and extension of

the internal audit, internal audit theory deepening and improvement, but also to promote the

internal audit substantive scientific reason to move forward.

Internal auditing is an independent, objective assurance and consulting activity, which aims to

add value to the organization and improve operational efficiency of the organization, through a

systematic, disciplined approach to evaluate and improve risk management, control and

governance processes effect, help the organization achieve its goals. Internal auditing is an

active management audit, independence, extensive, comprehensive, positive characteristics, the

equivalent of the body's white blood cells, the establishment of corporate self-improvement

within the organization, the healthy development of the immune system, the internal audit as a

whole benefits from business departure, identify problems, analyze issues and solve problems.

Internal auditor is seen in the West is the owner of Butler and staff to think the boss, the boss of

urgency, dry boss wanted competent or can not do without things. Internal audit is an important

enterprise management tool, the Audit Committee of the Board is part of subordinates, the

board of directors and senior management is responsible, in accordance with the principle of

separation of ownership of the franchise and, supervision and evaluation of business

management, management advice and suggestions, report to the Board auxiliary enterprise's

internal management, supervision and control of play, the role of advice. An internal audit

function can be broadly attributed to two aspects, namely the role of protective and

constructive role. A protective role.

Protective effect refers to the inspection and evaluation of internal audit activities, and

constraints can reveal all kinds of immorality and produce non-standard behavior, to prevent

adverse consequences to the organization. Protective effect mainly in the following areas

(1) for the establishment of a sound and effective internal controls to provide reasonable

assurance that the management and control to avoid defects caused various losses. Expose and

curb corruption and fraud has occurred or is in progress.


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(2) ensure that the highest corporate management presented to the authorities, according to

the financial and business information to decision-making is true, accurate and complete

information to avoid errors caused by making mistakes.

(3) to protect the security and integrity of assets and provide a guarantee for the effective

utilization of economic resources, to prevent loss and waste of resources phenomenon. (4)

ensure that the organization's policies, instructions and commands can effectively get

implemented, compliance with laws and government regulations and industry standards, and

effective performance of the contract, the maintenance of social corporate reputation. 2,

constructive role.

Constructive role to be examined by means of inspection and evaluation activities for the

management and control problems and deficiencies exist, devise promotional comments and

reform program,, thereby helping enterprises to improve management, enhance economic

efficiency, in the most good way to achieve organizational goals. Constructive role mainly in the

following areas:

(1) supervise the internal control system of the audited entity to establish cost-effective, andpromote the improvement of modern management level, so that a variety of activities to

achieve the goal of effective control, eliminate actual and potential vulnerabilities are managed.

(2) for the control system defects, proposed control measures cost-effective and practical, so

that has to control the lowest cost effective control of the target control system.

(3) recommend a more economical and efficient use of resources to help managers optimize the

allocation of resources, expand its operations and results, improve economic efficiency and

enhance the competitiveness of the organization.

(4) to promote the continuous improvement of service quality internal members, in order to

better fulfill their responsibilities to achieve the organization's goals and make greater

contribution.

The importance of internal audit Universities

In recent years, the national implementation of university policies, inject a lot of money to

achieve the rapid development of higher education, education and education, the public face of

the subject has been greatly improved, a strong impetus to the modernization of the country.


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However, some colleges and universities in order to continuously improve their own interests

fees, assuming a charge of serious damage to the party and the government's image, "audit

storm", the number of universities has been severely punished, individuals have also been

severely punished by law. Therefore, the strengthening of audit oversight universities, without

delay. First, adhere to the principle of

Internal audit university workers, in essence, is engaged in the work of the internal checks.

Adhere to the principle eliminate interference, the situation is not only not only private, is

particularly important. If you dare to adhere to the principles of the problems identified, Mabu

Kai sensibilities, laissez-faire, the result will be harmful to others. (A) strict policy concerns

Internal audit work in college comrades, for their work must first have a clear understanding of

profound thought, to be clear policies and regulations of the laws, regulations and government.

Stress study, political awareness; secondly to clear the importance of his own role in the

negative. In concrete work, should be good through numerous appearances as a preventive

measure. (B) Quweicunzhen

Truth is the essential attribute of audit oversight. Only true, in order to properly and objectivelyand comprehensively reflect the actual picture. Realistic, fair and comprehensive, does not

exaggerate overstating and sweeping, is the basic principle of the work. On working methods,

with people going to be cautious and meticulous, first one, the second is two, what it is, and

always adhere to the principle of authenticity. Should be targeted, not eyebrows beard grabbed.

Comprehensive analysis capabilities stronger, analytical verify the authenticity and the essence

of things. Must carefully distinguish those who really make a mistake, there is really false, true

implicit false, half-truths, and even the basic problem with the facts. Identify and solve these

problems alone and meticulous work, strong sense of responsibility is not enough, but also need

to have other abilities and qualities.

(C) excellent quality, self-discipline

Internal audit work in college comrades, we must have a deep theoretical knowledge, but also a

wealth of practical experience, to find the problem of reconciliation

Resolve the problem. To audit and supervision of others, their overall quality, however hard,

lack of practical experience, will be taken seriously. Not cause problems found by checking the

person, department, unit leadership's attention, the work is equal to waste. Always have to

know the importance of being responsible for their own responsibility to make their own hands

after the audit report is authentic. Second, strengthen management fees


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Fees is a sensitive issue and the current hot issues of society, is the focus of the party and

government to make great efforts to rectify and governance. For fees, the standard is

reasonable, if consistent with national laws, regulations and fee regulations formulated by the

government, with or without arbitrary charges, fees and all sorts of excuses for excessive

charges, see if there is no burden of students and the masses, causing social discontent;

whether local level of economic development. Pay attention to the ways and means, can nottake a simplistic approach, should be promptly reported to the unit leaders to consult and

obtain the active support, try to solve the problem internally, originating not made stage, to

avoid undue adverse consequences and losses. Third, the effectiveness of management

(A) improve the regulatory system

Establish a sound mechanism to strengthen the supervision and inspection of the constraints to

rely on a sound regulatory system to do that. Need to improve several aspects of the

organization, staffing, funding arrangements, and other leaders attach importance to

cooperation. In my school, the current there are some problems: First, the audit department

tied together with discipline inspection and supervision departments, duties and powers of

discipline inspection and supervision departments with the audit division unclear index

insufficient staffing, funding arrangements are not sufficient, some units leadership audit

recognize the important role and significance of inadequate support is not enough. Second, the

organizational structure, staffing and other unsound funding is not in place, the impact of the

internal audit universities. Third, some leading cadres from the supervision and management. In

recent years have revealed through the audit of arbitrary charges, expenses, and some corrupt

bribery corruption cases, is very telling. It shows lack of supervision and control mechanism,

must be flawed management. Therefore, to continuously improve various rules and regulations,

to further strengthen the supervision and inspection mechanism, it is quite a long time

university internal audit of priority.

(B) to achieve "zero risk" to ensure the effectiveness of management

The so-called "zero risk" refers to the probability of the occurrence of the problem of

management colleges zero. The purpose of internal audit work is to reduce the risk of an audit

supervision and inspection, in order to achieve "zero risk" management control objectives. The

first thing to focus on risk prevention, we must develop effective risk prevention measures in

place. Risk refers to the risk prevention measures that have been confirmed or definite and

potential prevention methods and means. It includes risk reduction options, risk aversion and

risk transfer. Risk refers to the risk of reducing the selection, choice of risk minimization and loss

minimization. Risk aversion refers to the risk avoidance and omissions. Internal auditor

supervision and management control inspection, should be risk prevention measures for the

audit department to check to see whether adequate, appropriate and effective. For lack of risk

control measures to prevent, to suggest improvements and suggestions, and urge them to

establish a sound risk prevention measures as soon as possible. Secondly, we should focus on

the rational allocation of resource optimization, efficiency audit, several aspects of management

audits, financial audits, risk decision-making, leadership and management audit supervision

term. The rational allocation of resources optimization, we must mobilize all positive factors


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The Importance of Internal Audit