Application of Value-Added Internal Audits—Taking Changan Automobile as an Example

Abstract

With the updating of auditing concepts and the development of internal auditing, more and more enterprises are focusing on value-added internal auditing. Value-added internal auditing is not only an extension of traditional auditing, but also helps enterprises reduce risks, strengthen internal controls, improve governance structures, and create value for enterprises. Research in this field is of great theoretical and practical importance. This article first explains the concept, characteristics, and ways in which value-added internal auditing adds value to enterprises, and introduces three related theories: stewardship, risk management, and value chain. Next, it analyzes the current status of value-added internal auditing applications in Chinese enterprises, mentioning problems such as insufficient independence, outdated audit methods, and narrow business scope. Based on these, it points out that domestic internal auditing will trend towards value growth. This article uses a case study of Changan Automobile's internal auditing to illustrate how the internal audit team can improve enterprise management by identifying and improving business processes, rules and regulations, risk management, and internal controls, and analyzes its value-added effects. Finally, it summarizes the insights gained from Changan Automobile's internal auditing practices, providing a reference for the improvement and development of internal auditing in domestic automotive and other manufacturing enterprises.