Development trends of internal auditing in China

Abstract

Discusses the role of internal audit in the socialist market economy, the need for supervision of enterprises through internal audit and the way in which various stakeholders benefit. Makes a case for why internal audit uniquely fulfils the supervisory role and should not be substituted by government or public audit institutions. Charts the shift from financial to performance auditing. Enterprises which established internal audit early have achieved a competitive advantage, and internal audit services are increasingly requested rather than imposed, although there remain pockets of resistance. Presents models of the fit of the internal audit department with the rest of the organization and stresses the importance of a firm working relationship with the external auditors.

Citation

Enyue, Z. (1997), "Development trends of internal auditing in China", Managerial Auditing Journal, Vol. 12 No. 4/5, pp. 205-209. https://doi.org/10.1108/02686909710173894