1, control environment
2. Risk assessment
3. Control activities
4. Information and communication
Step 5 monitor
Internal control audit is a process of confirming and evaluating the effectiveness of enterprise internal control, including confirming and evaluating the defects and grades of enterprise control design and control operation, analyzing the causes of defects and putting forward suggestions for improving internal control.
Internal control audit is a modern audit method to determine the credibility of the internal control system of the audited entity through inspection, analysis, testing and evaluation, so as to identify whether the internal control is effective.
Internal control audit is the re-control of internal control and the self-demand of enterprises to improve their management and economic benefits.
The Basic Standards for Enterprise Internal Control issued by Ministry of Finance, Audit Office, China Securities Regulatory Commission, China Banking Regulatory Commission and China Insurance Regulatory Commission is an important basis for internal control audit. According to the internal control guidelines of listed companies in Shanghai and Shenzhen stock markets.
The Shanghai and Shenzhen stock markets encourage the board of directors of listed companies to carry out internal control self-evaluation, disclose the internal control self-evaluation report when disclosing the annual report, and disclose the audit and evaluation opinions of the accounting firm responsible for auditing the annual report.