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Of Internal Audit in the role of internal control internal control

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					Of Internal Audit in the role of internal control internal control

 corporate control of the internal audit

  Internal control refers to the business executive leadership and management of all
relevant personnel in dealing with the production business activities interrelated
constraints of a management system, including normal operation for the business
adopted a series of necessary management measures. As a modern business
management is an important part, is the internal management control of all forms of
general, the larger the enterprise the higher the internal control system requirements, a
large number of management practices that: get control of the strong control the weak
No control will be chaos, internal control has become a symbol of modern enterprise
management to measure, is a modern enterprise operation and management of the
foundation.
  Internal Audit of internal control system itself is an important sub-systems, it is to
achieve an important means of internal control objectives. The work mainly focused
on business operations and control systems of various independent evaluation, for
example, Internal examination of established policies, procedures implemented, if
they comply with established standards, whether the rational and efficient use of
resources and business objectives are achieved and so on. In addition, the internal
audit to improve internal controls can provide constructive advice. It should be said,
continue to improve in the enterprise, improve the internal control system in the
process of strengthening the internal audit is an integral part of its role is becoming
increasingly important. In general, can be divided into the following:
  1, evaluation and assessment of enterprise's internal control systems
  sound, a sound internal control is the enterprise operation and management of the
foundation. Therefore, the auditor is the primary concern of enterprise internal control
system, only the start of all operations of the system specification, can radically
reduce the company's business risk, so the evaluation and assessment of internal
control system is the most important internal audit employment. The assessment is
mainly integrity of the system of internal control, compliance and effectiveness.
  1, test evaluation of the integrity of internal control systems
  major solution tests the integrity of the internal control system is reasonable, sound,
and the key points of internal controls are complete, accurate, and so on. Through
analysis of the information on these tests to assess the robustness of control systems.
And for internal control of the weak points and control points, found loopholes in the
management of proposed improvements.
  sound internal control system are determined by various factors, such as internal
controls should conform to the relevant laws, regulations and actual conditions of the
unit, all employees must comply with them. Internal organization of internal control
should ensure that, post and its functions and powers of a reasonable set-up and
division of labor, to uphold and ensure the separation of incompatible duties, mutual
restraint, mutual supervision.
  internal audit staff can collect information through the enterprise business
management systems, regulations and methods, as well as to the relevant departments
and personnel investigation, using survey methods or the account of law auditing
methods, proper internal control processes the extent and degree of perfection and a
number of control points for testing.
  Case:
  a cashier and financial (incompatible duties should be separated)
  cashier and accounting functions must be strictly separated. Is not part-time cashier
auditing, accounting, file keeping and income, expenses, costs, claims and liability
accounts registration. Money by one person may not handle the whole process of
financing business. This cashier's accountability is to ensure integrity of physical
security of cash, but also to prevent corruption, embezzlement, smuggling, and
re-deposit the cash payment, missed an important part of cash.
  b Financial seal (to be kept separately by the Finance Cashier)
  financial seal shall be kept by hand, can not be concentrated in the hands of a person
to avoid fraud. Financial seal should be kept hand. Personal Name Chapter must keep
himself or his authorized officer. One person kept strictly prohibited payments
required by the seal.
  c
  fixed assets, fixed assets inventory overage shortage, the situation is not promptly
after the identification of assets without cause increased erosion and loss of control.
Staff also leave some units are not included in the transfer of assets to the scope of the
work likely to cause difficulties in inventory, when, as an internal auditor should
advise the responsible people understand the reasons and make relevant records. For
example, inventory loss, the reason may be due to a transfer of assets in-house, but
did not timely apply for the appropriate transfer procedures, or custodian responsible
person accidentally lost. Overage of the reason may be due to other business
donations, not timely recorded. Furthermore, the management of fixed assets resulted
in inconsistent with the accounts and the main reason is the confusion may also be
capital expenditures and operating expenditures, mainly in two aspects: on the one
hand there clearly are costs of the project expenditure categories, financial staff to
shift The original package included in the fixed assets, such as some companies to
buy vehicles, insurance, petrol and parking fees, fees charged to the vehicles of some
fixed assets, and in fact should have been all of these are regular, every day or annual
costs incurred Expenditures. On the other hand is likely due to the negligence of the
financial capital expenditure projects are assigned to the cost of expenditures for the
content of the range, for example, some companies in the housing renovation, the new
acquisition of some equipment, such as air conditioning and other equipment,
financial officers put all of the expenditure of these devices included in the package
cost. In the event of the above problems, as an internal auditor should be promptly
noted that the identification of reasons, to correct fixed asset management business in
the existing loopholes, ensuring consistent with the accounts and ensure that
enterprise's fixed assets management control point monitoring 职能.
  2, testing and evaluation of internal control systems to follow.
  number of internal auditors on the internal control system control point of testing,
analysis, control point which to build a strong internal control system, which control
the existence of weak links point to evaluate the internal control system in actual
business activities implementation, and review management system in the use of
implementation, mainly the: control points 虽然 provisions that have not been
implemented or Wanquan implementation; under control points are not realistic
situation, which resulted not or can not perform. Compliance testing to resolve the
internal control system consistent with the extent to identify the control measures
being audited are all truly exist in the management system, is fully and carefully
observe the system requirements. According to the test site reliability of the analysis,
evaluation of the system being tested the extent of internal controls and to identify
weak points and control out of control points, while identifying key audit to determine
its inclusion in the substantive test.
  (Case 1)
  chapter on the management of corporate banking seal
  According to the accounting system, company's internal control system has a basic
control point, that is, corporate finance and corporate seal of Chapter Chapter
managed separately. In general, the financial chapter of the cashier by the company
management, legal chapter cashier duties by non-staff management, general business
authorized by the financial staff.
, but now some businesses are not due to its large size, it is limited to accountants,
easy management chop in the grounds of the bank owned by the hands of a custodian,
a similar vulnerability that internal control systems, internal audit must In the tests to
detect and point it out.
  (Case 2)
  in the air transport enterprises, issuing a blank ticket to the sales agent is the
passenger and cargo sales in a very important part of the internal control system of
issuing tickets on a very strict control over the amount system. For example, before
the first ticket received in payment of the appropriate deposit, also provides a timely
accounting of sales agents, ticket agents to confirm all be withdrawn from circulation
after the release of new tickets, new ticket size of the issuance amount of repayment
of the situation with the proxy ticket so directly linked. However, in practice, due to
various reasons, such as sales agent for many years the company's existing customers,
or sales market in the off-season and so on, some sales will ignore the blank tickets
issued on the amount of supervision. Cause the actual payment amount and the
deposit ticket issued to allow the number of discrepancies, and even greatly exceeded.
This has brought great sales risk, once the agent of poor credit or stop operating, not
only the repayment of reimbursement and proxy ticket will have problems, and even
affect the recovery of blank tickets, resulting in the loss of assets. Internal Audit staff
found that these circumstances, should urge the relevant departments, personnel
system on a blank deposit ticket strict monitoring, rules-based. In special cases, need
to exceed the limit of tickets issued, will have to establish a strict licensing system
checks at each level to ensure the risk to a minimum.
  3, testing and evaluation of the effectiveness of internal control system effectiveness
test
  main function is to understand how the internal control system, whether to play a
role, effectiveness and other issues. Test the effectiveness of internal audit evaluation
is a more important content, it has a direct impact on the business activities can be
smoothly achieve the desired goal. To correctly evaluate the effectiveness of internal
control systems, internal audit staff in addition to the field of accounting in the
financial statements, books, documents and relevant information to verify the
monitoring, but also the management and operation of enterprises should invest more
enthusiasm and concern.
  Currently, many companies have adopted goals of its internal management,
especially as our company this large-scale enterprises. Internal audit because of its
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