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Auditors told to help improve companies management
(Xinhua)
Updated: 2006-01-13 16:43
China's Auditor-General Li Jinhua urged internal auditing bodies Thursday to
conduct more management audits in enterprises to improve their financial and
management performance.
The Auditor-General of National Audit Office said on Thursday that income and
expenses audits that only aim at correcting errors and cheat could not meet the
need of economic development.
Internal audits should play a more important role in improving economic
growth and should provide consultation to decision makers,said Li in a council
meeting held by China Institute of Internal Audit (CIIA) in Beijing on Thursday.
Li encouraged internal auditing bodies to take an active part in supervising
and evaluating enterprise's operating activities, risk management and internal
control, giving advisory opinions and solutions to decision makers.
The Auditor-General said authenticity and legitimacy are mainly found in
China's economic problems. Income and expenses audits are still an effective way
to improve financial performance by enforcing authentic and legitimate
orientation, he said.
Li said cost-effectiveness audit and management audit are key, and that all
audits should not be only a checking system but also a controlling system which
could make irreplaceable contributions to enterprises.
The overall objective in the next five years for Chinese internal auditing
bodies established by the CIIA is to integrate income and expenses audits with
internal control and risk management audit.
The CIIA was founded in 1987. There are estimated 82,000 internal auditing
bodies with more than 200,000 internal auditors in China.
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