Perfect the internal audit system

Improve the internal audit system

I. The emergence and development of internal audit in private enterprises

China's private enterprises generally appear in the form of family enterprises at the beginning of entrepreneurship. Enterprise members rely on blood and kinship, have common interests and goals, and have natural self-discipline, the spirit of self sacrifice, a strong heart, and a high degree of trust and loyalty between each other, Therefore, most private enterprises do not pay attention to internal audit at the beginning of entrepreneurship

with the expansion of the scale of family enterprises, it is more and more difficult to rely on personal ability and family members to manage, and the affairs that need to be handled far exceed the capacity load of managers; Fundamental changes have taken place in the field of enterprise development, both in terms of technology, products, market, financing and other aspects, which exceed the experience accumulation and knowledge preparation of the management or family members. The speed of managers' relearning is also far behind the speed of enterprise development, and the depreciation speed of managers' experience and knowledge is far higher than the change speed of enterprises. The management of the family system began to weaken, and a series of shortcomings in management began to emerge, which were specifically manifested as follows:

first, after the enterprise had considerable accumulation and development, the interest contradiction between family members and entrepreneurs deepened, the interest temptation increased, and the impulse to seek self owned assets would gradually exceed the concern for the assets of the enterprise legal person, In particular, the enterprise property rights have great friction under the condition that natural persons have not been strictly defined in advance. The conflict of interests within the core group has led to contradictions in enterprise management, and the interest requirements within the core group have led to fraudulent enterprise behavior

second, information asymmetry began to appear and became more and more serious. With the expansion of enterprises, the amount of information is growing exponentially; With the complexity of the internal relations of enterprises, information changes more rapidly and more complex; With the strengthening of production and management professional ability of enterprises, the specialization and permeability of information itself are continuously improved; With the decreasing degree of loyalty in the enterprise team, the distortion of information continues to increase, and fraudulent transactions occur. It is impossible or costly to master enough information

third, as the family system is broken, professional managers are introduced, and external talents enter the management of the enterprise, the enterprise may cause a crisis of trust at any time. Because both business owners and professional managers fully meet the mechanical standards of pipe testing, without the maintenance of blood and kinship, and without the dependence of matching professional ability; There is neither a common and consistent interest goal, nor a complete preference for common interests; In addition, external professional managers do not have any asset capacity. If there are mistakes in their work and cause losses, it is impossible to bear any economy. At most, they resign and do not do it. This often stimulates people's unfulfilled greed and inspires people's speculative immoral behavior of "riding without tickets"

in order to overcome the above shortcomings in management, internal audit began to appear in private enterprises. With the increasingly fierce market competition, private enterprises are forced to seek benefits from management, technological progress, optimization of resource allocation, adjustment of product structure and cost reduction. The internal audit of private enterprises has gradually expanded from the function of checking errors, preventing fraud, and protecting the safety of enterprise property to the function of economic evaluation. Internal audit has been paid more and more attention in private enterprises

second, the role of internal audit in private enterprises

first, check errors and prevent fraud, and protect the safety of enterprise property. The function of "error checking and fraud prevention" is the driving force of internal audit in private enterprises. When the modern enterprise system is not perfect and the legal environment and restraint means of professional managers are not mature, strengthening supervision and protecting enterprise property safety is particularly important for private enterprises that condense the hard-earned family struggle

second, improve the internal control system and improve the management level and work efficiency. Through the evaluation of the enterprise's internal control system, internal audit demonstrates the applicability and operation effect of the internal control system from an independent and objective point of view, reveals the weak links, makes it more rigorous, more perfect, more scientific and more effective, reduces the occurrence of mistakes and abuses, and thus improves the level of business management and work efficiency

third, optimize resource allocation and improve economic benefits. Through the analysis and evaluation of the utilization effect of human resources, material resources, financial resources and other resources in the enterprise, internal audit can find the weak links in the allocation of enterprise resources, and put forward improvement suggestions and measures to tap the potential of production and operation, prevent the idleness and waste of resources, promote the rational allocation of enterprise resources, and improve economic benefits

III. problems existing in the internal audit of private enterprises at present

first, the understanding of internal audit. In the process of carrying out internal audit in some enterprises, the auditees often have resistance, thinking that "I try my best for the company, but the company doesn't trust me so"; It is easy to cause contradictions between the boss and the auditee, and between the auditee and the internal auditors, which makes the internal audit work difficult to carry out normally, and affects the auditee's enthusiasm for future work. In addition, some enterprise bosses hold the idea of "no doubt about the employment of people, no doubt about the use of people", afraid that carrying out internal audit will hurt the harmony. Unless there is a major suspicion or there has been a problem, they will not carry out internal audit

second, the function of internal audit has not been brought into full play. At present, many private enterprises only pay attention to the supervision function of internal audit to prevent mistakes and malpractices and protect the property safety of enterprises, while the management function of internal audit, the protection function of preventing coal and steel from losing production capacity policy, the evaluation function, the construction function and so on have not been paid enough attention, and the function of internal audit has not been fully played

third, the institutional setting is not perfect. At present, some private enterprises merge audit institutions with other departments, or set up auditors in the financial and accounting departments; Although some private enterprises have set up independent audit institutions, they are in a parallel position with other departments. This cannot guarantee the independence and authority of internal audit, and affects the normal development of internal audit work

fourth, interpersonal complexity. The complexity of internal interpersonal relationships in private enterprises has a certain impact on the normal development of internal audit. At present, many private enterprises have just emerged from the family system, and the smell of family system in management is still very strong. The relationship between "insiders" and "outsiders" is still coordinated. Some private enterprises are composed of multiple shareholders, and each shareholder has sent "his own" to join the enterprise management. If the interpersonal relationship is not handled properly in the audit process, it may stimulate contradictions between shareholders and affect the stability of the enterprise

fifth, the quality of auditors is low. Internal audit involves all aspects of the enterprise, even the core secrets of the enterprise. Some private enterprises dare not easily let "outsiders" take charge of internal audit work, so they will be greatly restricted in employment

Fourth, how to improve the internal audit system of private enterprises

in view of the various problems existing in the current internal audit of private enterprises, I think we should strengthen the work in the following aspects:

first, strengthen the independence and authority of the internal audit institutions. Independence and authority is an important guarantee for the internal audit institutions to give full play to their functions. The internal audit institutions should not be restricted by the enterprise management and work independently and objectively. Specifically, an Audit Committee directly led by the board of directors can be established to be fully responsible for the internal audit of the enterprise

second, bring internal audit into the track of standardization and institutionalization of enterprises. Clearly stipulate the authority, scope of work and code of conduct of internal audit, so that the audit work can be carried out in accordance with rules. Only after standardization and institutionalization can interpersonal relationships be diluted and internal audit work be objective and fair

third, strengthen the construction of internal audit team and improve the quality of internal auditors. To do a good job in internal audit, we should have an internal audit team with excellent style and excellent technology, establish a set of effective internal audit self-assessment methods, and accept the supervision of superior leaders and company employees. At the same time, on the one hand, we should do a good job in the professional ethics education of internal auditors, on the other hand, we should do a good job in the professional ability training of internal auditors

fourth, strengthen the construction of enterprise culture and create a good internal audit environment. At present, the key point for private enterprises to transform the family enterprise culture and build a modern enterprise culture is to re recognize wealth and make everyone establish a sense of society. Although the property of private enterprises is recorded under the name of the owner, it is a part of social wealth, creating wealth for enterprises, that is, creating wealth for society. With this understanding, the high crystallinity makes it have a large tensile modulus of elasticity, so that the enterprise can have cohesion, and a relationship of mutual trust can be established between the owner and employees, "insiders" and "outsiders", so as to create a good internal audit environment

fifth, actively expand the field of internal audit business. In order to meet the needs of the development of private enterprises, internal audit should continue to expand its business areas. At present, the development trend of internal audit is: 1. Strengthen the risk management of enterprises, control the risk to the lowest level, and prevent it before it happens; 2. Strengthen the internal system review of enterprises and establish a strict and perfect control system; 3. Strengthen management audit and economic benefit audit to seek greater economic benefits