1. Including the out-of-control and weak control business systems or business links found in the comprehensive evaluation, including those that are considered incomplete by the audit inspection and supervision results or unclear by the soundness evaluation, and those that are not implemented or poorly implemented by the compliance evaluation.
2. Incorporate business systems and business links that have not been well controlled within a specific period of time into the audit scope.
3. Economic business with high inherent risks.
Internal audit generally includes financial revenue and expenditure audit, economic benefit audit and economic responsibility audit.
(A) financial revenue and expenditure audit
The general scope of financial revenue and expenditure audit is relatively limited, only auditing the authenticity, effectiveness and compliance of financial revenue and expenditure of all departments and subordinate units of the company. At the same time, it also focuses on checking the flow of funds and expenditures.
(2) Economic benefit audit
The purpose of economic benefit audit is to improve the management level and development level of the company. Through internal audit, we can find out the problems existing in management, put forward improvement measures and improve economic benefit, which has also become the main purpose of enterprise managers to set up internal audit institutions and personnel.
(3) Economic responsibility audit
Economic responsibility audit is a review of the implementation of economic responsibility undertaken by the economic responsible person. Through the economic responsibility audit, we can check whether the economic responsible person has any irregularities in the industry during the performance of his duties, and generally focus on the audit of business responsibility objectives; At the same time, it is also combined with daily financial revenue and expenditure audit and economic benefit audit to serve the outgoing responsibility audit through the accumulation of audit data and information.
Second, the definition of audit
As a supervision mechanism, audit has a long history in practice, but people have different opinions on the definition of audit. It is recognized as a representative and widely quoted definition of audit given by American Accounting Association in its 1972 Announcement on Basic Auditing Concepts, that is, "Audit refers to a systematic process of objectively collecting and evaluating evidence and transmitting the results to interested users to find out the consistency between the identification of relevant economic activities and economic phenomena and established standards".
Identification of economic activities and economic phenomena
Economic activities and economic phenomena are the objects of audit, that is, the contents of audit. The identification of economic activities and economic phenomena represents the audited entity's views on the legal compliance or effectiveness of its economic activities and the truth and fairness of economic phenomena (such as accounting data).
Collect and evaluate evidence
Evidence is various forms of evidence used by auditors to determine the legal compliance or effectiveness of economic activities of audited units and the truth and fairness of economic phenomena. Collecting sufficient and powerful audit evidence is the core of audit work. In a sense, audit is a purposeful and planned process of collecting, identifying, synthesizing and utilizing audit evidence.
objectivity
Objectivity refers to impartiality and seeking truth from facts, which is the professional ethics requirement for auditors. Only by objectively collecting and evaluating evidence, making audit conclusions and reporting audit results can auditors achieve audit objectives and convince stakeholders of audit opinions.
Established standard
The standards are the basis of audit, that is, the standards to judge whether the economic activities of the audited entity are legal and compliant, how economic benefits are, and whether economic phenomena are true and fair, such as laws, regulations and standards promulgated by the state, accounting standards formulated by professional institutions (such as the announcement of financial accounting standards issued by FASB), and various consumption quotas, plans and budgets formulated by enterprises.
Pass the result
Audit results are communicated to organizations and personnel who rely on and use audit opinions through the preparation of audit reports. Compiling the audit report is the last step of the audit work. The format of some audit reports is standardized, such as the annual accounting statement audit report; Some are non-standard, such as the special audit report of staff fraud. In some cases, auditors can even report the audit results orally and informally.
System process
Auditing must be carried out in accordance with recognized norms (such as the Ten Generally Accepted Auditing Standards and the Announcement of Auditing Standards issued by AICPA of the United States, collectively referred to as "GAAP") and follow certain procedures to ensure auditing quality and improve auditing efficiency.
Third, the essential meaning of audit
One is that auditing is an activity of economic supervision, and economic supervision is the basic function of auditing;
Secondly, audit has independence, which is the most essential feature of audit supervision and the key to distinguish it from other economic supervision. Compared with economic management activities, non-economic supervision activities and other professional economic supervision activities, audit mainly has the following basic characteristics.
(A) the characteristics of independence
Independence is the essential feature of audit, and it is also a necessary condition to ensure the smooth progress of audit work.
The practical experience of auditing at home and abroad shows that auditing is independent in organization, personnel, work and funds. In order to ensure that audit institutions independently exercise their audit supervision power, audit institutions must be independent full-time institutions, which should be set up separately and have no organizational affiliation with the audited units. In order to ensure that auditors can check, evaluate and report objectively and fairly, auditors should have no economic interest relationship with the audited entity and not participate in the management activities of the audited entity; Auditors who have an interest in the audited entity or audit matters shall withdraw. Auditors shall exercise their audit functions and powers according to law and shall be protected by state laws. Audit institutions and auditors shall independently exercise their power of audit supervision according to law, and must collect certification materials, make audit judgments, express audit opinions and submit audit reports in accordance with the prescribed audit objectives, audit contents and audit procedures, and strictly follow the requirements of auditing standards and auditing norms. Audit institutions and auditors should maintain professional independence and not be interfered by other administrative organs, social organizations and individuals. Audit institutions should have their own sources of special funds or a certain amount of economic income to ensure that they have enough funds to independently carry out audit work without being restricted by the audited entity. The object of audit or the content of audit supervision generally refers to the economic activities and economic data of the audited entity. The emphasis is on evaluating economic responsibility. Therefore, audit supervision is an economic supervision, which is different from administrative supervision or judicial supervision. The object of administrative supervision is the administrative activities (including economic activities) implemented by the state administrative organs; Administrative supervision is not the authorization or entrusted supervision of the third party, and its executive body itself has the power of management and punishment. The object of legal supervision is legal relationship, and its basis is law. The highest legal supervision organ is the National People's Congress and its Standing Committee, which has the right to supervise the implementation of the Constitution. The main body of legal supervision is the court and the procuratorate, and its supervision should be carried out in accordance with legal procedures. Although auditing is also supervised according to law, there are national guidelines, policies, plans, rules, standards, laws and regulations besides the laws on which it is based. Auditing according to law is not equal to legal supervision. Although audit supervision is also economic supervision, it is different from other professional economic supervision. Audit supervision is carried out by specialized departments. The audit department has no economic management function and does not participate in any management activities of the audited entity and the audit client, which is detached. The content of audit supervision depends on the needs of the authorizer or the client, and the content is extensive; Audit supervision carries out supervision on behalf of the state, and the audited entity shall not obstruct it; Audit supervision can not only supervise all economic activities, but also re-supervise other economic supervision departments and their supervised contents. For example, accounting, finance, taxation, banking and so on can implement economic supervision, but they are not independent economic supervision departments, mainly economic management departments. Economic supervision is an auxiliary function of its economic management, and supervision serves its management. The content of supervision is always consistent with its management scope.
(2) Authoritative characteristics
Audit authority is a necessary condition to ensure the effective exercise of audit power. The authority of audit is always associated with independence, which is inseparable from the independent status of audit organizations and the independent practice of auditors. The national laws of various countries clearly stipulate the implementation of audit system, the establishment of audit institutions and the status and power of audit institutions, which makes audit organizations have legal authority. The implementation of the audit supervision system in China is clearly stipulated in the Constitution, and the audit law further stipulates that the state shall implement the audit supervision system. Audit institutions shall be established in the State Council and local people's governments at or above the county level. Audit institutions shall conduct audit supervision in accordance with the functions and procedures prescribed by law.
Auditors perform their duties according to law and are protected by law. No organization or individual may refuse or obstruct auditors from performing their duties according to law, and may not retaliate against auditors. The person in charge of an audit institution shall not be removed at will if he has not violated the law or neglected his duty or otherwise failed to meet the post requirements. Audit institutions have the right to request the submission of materials, to conduct inspections, to investigate and collect evidence, to take temporary compulsory measures, to suggest the competent department to correct its relevant regulations, to inform and publish the audit results, to deal with and punish the auditee who refuses or hinders the audit work, to deal with the auditee's violation of the budget or other financial revenue and expenditure acts in violation of state regulations, to deal with and punish the auditee's financial revenue and expenditure in violation of state regulations, and to propose administrative sanctions to the relevant responsible personnel of the auditee. Auditors in China exercise their independent auditing rights according to law and are protected by law. For example, when the audited entity refuses or obstructs the audit, or has financial revenue and expenditure behaviors in violation of state regulations, the auditing organ has the right to make decisions or suggestions on handling and punishment, which further embodies the authority of auditing in China. Auditors should have professional knowledge and professional ability suitable for their audit work. Auditors should implement the challenge system and have the obligation of confidentiality. Auditors should be objective and fair, seek truth from facts, be honest and trustworthy, and keep secrets when handling audit matters. Auditors who abuse their powers, engage in malpractices for selfish ends or neglect their duties, which constitutes a crime, shall be investigated for criminal responsibility according to law; If it does not constitute a crime, it shall be given administrative sanctions. This not only helps to ensure the independence, accuracy and scientificity of audit practice, but also helps to improve the authority of audit reports and conclusions.
According to the requirements of China's auditing laws and regulations, the audited entity should resolutely implement the audit decision, such as paying the illegal income and fines into the special account designated by the auditing organ on schedule. If the audited entity and the assisting execution entity fail to implement the audit decision within the prescribed time limit and requirements, they shall take measures to order them to implement it; Refusing to implement the audit decision, apply to the court for compulsory execution, and may be held accountable according to law. It can be seen that the audit decision of our government audit institutions has legal effect and can be enforced, which fully shows the authority of our audit.
China's social audit organization is also a legal person organization approved and registered by the relevant departments. It independently undertakes audit verification and consulting services according to law, and its audit reports have legal effect on the outside world, which fully shows that they also have legal status and authority. China's internal audit institutions are also established according to law, which have a high status and relative independence within the unit, so they also have certain authority. In order to ensure the authority of audit, countries endow audit with transcendental status, supervision, evaluation and verification functions through company law, securities exchange law, commercial law and bankruptcy law. In order to improve the authority of auditing, some international organizations have made auditing an authoritative professional service in the world by coordinating national auditing systems and standards and formulating unified standards.
(C) the characteristics of fairness
Closely related to authority is the fairness of audit. In a sense, without justice, there is no authority. The fairness of audit reflects the basic requirements of audit work. Auditors should stand on the position of a third party, conduct actual inspection, make impartial and objective judgments, make fair evaluation and fair treatment, so as to correctly determine or remove the economic responsibility of the audited person. Only by maintaining independence and impartiality at the same time can auditors win the trust of audit authorizers or clients and the public and truly establish the image of audit authority.
legal ground
People's Republic of China (PRC) Audit Law
Article 2 The State practices a system of auditing and supervision. Adhere to the leadership of China * * * Production Party on audit work, and build a centralized, unified, comprehensive, authoritative and efficient audit supervision system.
Audit institutions shall be established in the State Council and local people's governments at or above the county level.
The financial revenues and expenditures of various departments in the State Council and local people's governments at various levels and their departments, the financial revenues and expenditures of state-owned financial institutions, enterprises and institutions, and other financial revenues and expenditures that should be audited in accordance with the provisions of this Law shall be subject to audit supervision in accordance with the provisions of this Law.
Audit institutions shall supervise through auditing the truthfulness, legality and benefits of the financial revenues and expenditures listed in the preceding paragraph.
Article 3 Audit institutions shall conduct audit supervision in accordance with their functions and procedures as prescribed by law.
Audit institutions shall conduct audit evaluation in accordance with laws, regulations and other relevant provisions of the state on fiscal revenue and expenditure, and make audit decisions within the scope of statutory functions and powers.