The joint internal audit system
Many of the major countries and regions, internal audit and independent audit, government audit to be an important part of the audit activities in the social economy. The nature of internal audit is divided into two categories, namely fiduciary duties arising out of the ownership and management of the data. 2000, international internal audit division Association in on duties description, and ethics guidelines and practice standard Yu based Shang for of times research, and proposed: "internal audit is a items independent, and objective of guarantee and advisory activities, its purpose is increased value and improved organization of business, through system of method, evaluation and improved risk management, and control and management process of effect, help organization achieved its target. "China and the United Kingdom have different socio-political and economic system, and internal audits of business contents and organizational aspects of difference.
First, production and development of internal audit
United Kingdom had existed since the 11-12 century Guild, 1-4 meetings to be held every year, its rules of procedure, including the election of Directors and Auditors. Is the Guild's executive organ of the Council, it must be called out when the Association bank accounts submitted to the auditor for review. Auditors review focused on governing role as trustee to deal with economic business integrity, reliability.
United Kingdom of modern internal auditing was developed after in the 1940 of the 20th century, 1948 United Kingdom in London set up a branch of the International Institute of Internal Auditors, namely United Kingdom Institute of internal auditors. Contributed significantly to the establishment of the Association United Kingdom development of internal audit, as of February 1991, has more than more than 3,000 members.
By contrast, although internal audit started late in China, but the speed of development. Before the establishment of the National Audit Office of China, in July 1983, the State Council of China has issued a document to establish and perfect internal audit issues. On August 29, 1985, China's State Council issued the provisional regulations on auditing work. On December 5 of that year, the Audit Commission published the regulations on internal audit work, this provision as the legal basis for China's internal auditing. In July 1987, was transmitted by the State Council and the China National Audit Office report on strengthening the work of the internal audit, greatly accelerated the speed of internal audit organization form. In 1994, China promulgated the People's Republic of China Law on audit, the internal audit law to affirm, define their legal status. In 1995 and the Audit Commission published the regulations on internal audit, the internal audit was further specific provisions.
At the end of 1999, China had established more than more than 90,000 of internal audit bodies, formed, including by regions, sectors and enterprises is composed of a complete internal audit system.
China and the United Kingdom established the internal audit department's motivation is different, China is in the early development of internal auditing States require companies to establish audit regimes, with the role of internal audit is recognized gradually, enterprises transition from passive to active. By contrast, the United Kingdom has more than 25% of the enterprise's internal auditing Department has a history of more than 30 years, Enterprise the motives and reasons of the establishment of the internal audit department the main demands from the Government, under the influence of Government, public and semi public enterprise audit to be much larger than the average enterprise. In addition, the Board is a member of the Audit Committee and external audit requirements have important effects.
Second, internal audit
United Kingdom offers three kinds of internal audit: set by the internal auditing organization audits, Union City and the social forces to conduct the audit. The three forms each have their advantages and disadvantages, but mainly to internal audit the audit organization set, its advantages are: to ensure that auditors ' loyalty to the Organization, protecting the interests of entire organizations and stakeholders, familiar with the goals and needs of your organization. Joint audits are well reflected the organizational independence of internal audit, but on loyalty and confidentiality aspects of this issue.
In order to effectively carry out internal audits, United Kingdom also provided for personnel duties, these include: the internal auditor or Manager job duties, responsibilities of the Internal Audit Division, contract auditor's responsibilities and so on.
As China's positioning in the internal audit Department of the unit, mainly responsible for the leadership of this Department, given the internal auditing Department a higher status, but because the main person in charge is not a very specific concept, therefore, in practice the internal audit body setting appears in many forms.
1, the Audit Committee is responsible for. Many companies have audit committees, the Audit Commission is the highest decision-making body of enterprise internal audit is responsible for auditing regulations, review the annual audit plan, decision important audit matters, etc. This is a collective leadership of internal audit organization. Some large enterprises and enterprise groups in China, the use of such forms.
2, the President or the Board of Directors. Internal Audit Department the direction of the Board of Directors, and reports to the Board of Directors. This form is more to strengthen its independence, so most are joint-stock companies.
3, the General Manager is responsible for. Internal audit-departments may only engage in regular internal audits, and the economic responsibilities of General Manager and management lacks a strong position, and maintained a strong sense of independence.
Is set out in the regulations on the status of internal audit in China, organizing higher status, independent; United Kingdom organization status of internal audits and by China, is naturally formed in the internal audit development process, the differences associated with the different social and economic systems. United Kingdom about one-third of the corporate internal audit department the rank of CEO, Chairman of the Board other than the managers report, when corporate revenues bigger, objects, the greater the difference of internal audit reports, many enterprises of enterprise internal audit as a management consultant, thinks it has the functions of corporate governance. Internal Audit Department in developing the audit plan will seek the views of the Department and audit guidelines of the work, three-fourths enterprises, between internal audit and external audit have a close business relationship.
Third, the content of the internal audit
United Kingdom internal audit includes:
1, the company's audit, the aim is to ensure the effective operation of the management system. Includes: the breadth and depth of internal control is appropriate, cost effective and rational use of the internal control. Specific content: corporate plan, capital cost and cash management, human resource management and stock trading. Company audit United Kingdom internal audit is an important business.
2, financial security audit. Its primary objective is to ensure the full protection of enterprise resources and control. Contents include: asset validation and compliance testing, claims auditing, current liabilities, long-term liabilities, and contingent liabilities of Auditors auditing.
3, management audit, United Kingdom the business audit is the entire operating process in the economy, efficiency and effectiveness of the audit. Economy is a measure of input standards standards of efficiency is a measure of input and output relations: effectiveness is a measure of output standards.
System evaluation and follow, contract audit, audit of information management and computer security audit. This shows that the United Kingdom involved in the internal audit field is very broad and comprehensive.
China's internal audit includes:
1, financial audit. Whose aim is to finance activities of compliance, legitimacy, and accounting records and reports the authenticity and reliability of the data provided by judge. Involved are: check the accounting data is true, correct and relevant economic information; check the security and integrity of the property and money: check the application of the accounting control, effective and sound: check transactions, economic contracts, legality and reasonability of the financial revenue and expenditure.
2, the performance audit. Whether it refers to an evaluation of the project after careful selection, and to evaluate the economic benefits of high and low, provide tools and approaches to enhance the economic benefits of the project. Related content: inspection and evaluation of the enterprise's internal control system, sound, effective; inspection, evaluation and supervision departments and departments in fulfilling their duties, improve performance, achieve their goals; feedback for business leadership, advising and assisting business decision.
Chinese enterprise's internal audit department also initiated a unique form of economic responsibility auditing, it is the owner's liability to corporate investors, as well as the heads of production and management to the corporate responsibility of the implementation of the audit. This form of auditing has great development potential.
In the audit practice, China and the United Kingdom's internal audit department some differences in terms of specific content, mainly in:
1, the United Kingdom stressed that checks the internal controls system, evaluate the adequacy of the internal control system is effective, helps to implement specific management objectives, pol