What is the traditional function of audit?

Traditionally, the internal audit function of an enterprise can be defined as four functions: supervision, evaluation, control and consultation.

1, supervision function. The internal audit department is an independent economic supervision subject within the enterprise, and its basic function is economic supervision. The supervision function refers to the inspection and evaluation of the financial revenue and expenditure and other economic activities of the audited object according to the provisions of financial laws and regulations, to measure and determine whether the accounting information is correct and true, whether the financial revenue and expenditure and economic activities reflected are legal, compliant, reasonable and effective, and whether there are illegal and wasteful behaviors, so as to urge the audited object to abide by financial discipline, improve management level and improve economic efficiency. Make the enterprise's own business activities coordinate with the national economic and social development, so as to realize self-improvement and self-restraint.

2. Evaluation function. The so-called evaluation function is to evaluate whether the plan, budget, decision-making and implementation scheme of the audited object are advanced and feasible, whether the economic activities are carried out in accordance with the established decision-making procedures and objectives, whether the economic benefits are good or bad, and whether the internal control system is sound and effective, so as to put forward opinions and suggestions in a targeted manner, and promote enterprises to improve their management and economic benefits.

3. Control function. As an important part of enterprise internal control system, internal auditor is the re-controller of enterprise internal control. Because it is directly led by the main person in charge of the enterprise, it can analyze and consider the problem from the overall situation of enterprise development. Effective control of enterprise production and business activities can provide direct technical support, check the degree and effect of control, put forward the shortcomings and problems in control, and realize the ultimate goal of control system.

4. Advisory function. Internal audit institutions have the obligation and responsibility to provide policy consulting services for various business activities of enterprises, integrate their unique professional advantages into all aspects of enterprise management, find problems in their work, provide targeted consulting services on systems, management and business control, and prevent major business fluctuations and management loopholes. At the same time, we can also carry out some work including consultation, suggestion, coordination, process design and training to provide solid services for all management levels of enterprises.

The new popular saying in the world is that the goal is to increase enterprise value. The Code of Practice for Internal Auditing (200 1 Revision) formulated by the International Association of Internal Auditors gives a new definition of internal auditing: "Internal auditing is an independent and objective assurance and consulting activity, whose purpose is to add value to institutions and improve their operational efficiency. It adopts a systematic and standardized method to evaluate and improve the efficiency of risk management, control and governance procedures, thus helping to achieve institutional goals. "