What are the setting modes of internal audit?

Internal audit refers to a management mode of self-monitoring and evaluation of its management activities within enterprises. There are mainly the following modes to set up internal audit:

1. centralized mode: set up a special internal audit department within the enterprise to audit and supervise the operation and management activities of the whole company.

2. Decentralization mode: the enterprise assigns the internal audit function to each department, and each department carries out the internal audit work by itself.

3. Mixed mode: set up a special internal audit department within the enterprise, and at the same time disperse some audit functions to various departments, and each department will carry out internal audit work by itself.

4. Outsourcing mode: The enterprise outsources the internal audit function to a professional audit institution, which will audit and supervise the operation and management activities of the enterprise.

The above four internal audit modes have their own advantages and disadvantages, and enterprises should choose the mode that suits them according to their own situation and needs. No matter which mode is adopted, internal audit is an important means of self-monitoring and evaluation of enterprises, which is helpful to improve the management level and risk control ability of enterprises.

The following are the advantages and disadvantages of the above four internal audit setting modes:

1. Centralized mode

Advantages: Centralized management can better ensure the professionalism and independence of auditing, and is conducive to finding and solving problems and risks within enterprises.

Disadvantages: the cost is high, it requires a lot of manpower, material resources and financial resources, and it is also easy to cause interference and dissatisfaction from other departments.

2. Decentralized mode

Advantages: it can better meet the needs of various departments and help to find and solve the problems and risks of various departments.

Disadvantages: lack of integrity and coordination, easy to cause information islands and repeated audits, and easy to cause insufficient risk control of the whole enterprise.

3. Mixed mode

Advantages: it can not only ensure the professionalism and independence of audit, but also meet the needs of various departments, which is conducive to discovering and solving internal problems and risks of enterprises.

Disadvantages: it needs to invest a lot of manpower, material resources and financial resources, and it is also easy to cause information islands and repeated audits, so coordination and integration need to be strengthened.