The purpose of internal audit is to provide reliable information for external audit, reduce the workload of external audit, cooperate with and supplement external audit, and help managers of departments and units to implement the most effective management.

The motive force for the development of internal audit is that after China joined WTO, the internal audit industry in China ushered in a period of development opportunities. Whether it is the legal construction of the legislative department, the development of natural science, or the competition and risks brought by economic globalization, it provides opportunities for the leap-forward development of China's internal audit, from the traditional internal audit model to the modern risk management basic audit model.

Extended data:

Internal audit function:

(1) for value management. Internal auditors pay attention to the company's resource use from three aspects: economy (lowest cost), efficiency (best use of resources) and effectiveness (best result).

(2) Audit of enterprise information system. Through internal audit, it is determined whether the company's information system provides reliable information for the preparation of statements and whether there is an effective internal control system to reduce the risk of misstatement and omission.

(3) Carry out project audit. Internal audit audits specific projects, such as establishing new information systems and opening new production and processing areas. Internal audit is responsible for identifying whether the objectives of the project can be achieved, whether the project runs effectively as planned, and summing up experience from the failure lessons of running the project.

(4) Conduct internal financial audit. This is the traditional main work area of the internal audit department, which routinely checks financial records and supporting documents when preparing financial statements to reduce the occurrence of errors and fraud; Trend analysis of financial data.

(5) Conduct business audit. The internal audit department can audit the business departments such as procurement, marketing and human resources, check and review the effectiveness of internal control, and put forward suggestions and countermeasures that can further improve performance and management.

References:

Baidu encyclopedia-internal audit