Full Coverage of Internal Audit Based on Value Chain Analysis

Yushen Ma

doi:doi:10.11648/j.jfa.20210906.13

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Full Coverage of Internal Audit Based on Value Chain Analysis

Yushen Ma

Published in Journal of Finance and Accounting (Volume 9, Issue 6)

Received: 15 October 2021 Accepted: 1 November 2021 Published: 10 November 2021

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Abstract

In order to adapt to the requirements of corporate governance, internal audit must enhance its value and innovate itself to meet new challenges. The value of internal audit mainly lies in the improvement of internal value rather than the improvement of quantitative value. The improvement of internal audit value must be aimed at risk management and internal control. The core of internal audit innovation is the innovation of audit concept and audit thinking mode, and the basic foothold should be on the innovation of audit content, which is the full coverage of internal audit. Full coverage of internal audit refers not only to the full coverage of the audited entity, but also to the full coverage of the audit content. Internal audit should not only be limited to the flow of funds, but should jump out of the small circle of financial audit and march into the decision-making audit and strategic audit. The scope of internal audit must be extended to all aspects of enterprise economic activities. Full coverage of internal audit requires that internal audit must be value-added internal audit aimed at increasing enterprise value, which is value chain audit. Based on the value chain analysis as the breakthrough point, putting the internal audit activity into the organization's value chain, the author put forward that the tentacles of the internal audit should be thoroughly all the value chain analysis, and according to the type of cost drivers respectively constructed three kinds of value-added internal auditing mode, the structured audit mode, process-based audit model and nodal audit model.

Published in	Journal of Finance and Accounting (Volume 9, Issue 6)
DOI	10.11648/j.jfa.20210906.13
Page(s)	230-235
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Internal Audit, Value-added, Full Coverage, Value Chain, Corporate Governance

References

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[3]	Audrey A. Gramling and Nur Irem Nuhoglu and David A. Wood. A Descriptive Study of Factors Associated with the Internal Audit Function Policies Having an Impact: Comparisons Between Organizations in a Developed and an Emerging Economy [J]. Turkish Studies, 2013, 14 (3): 581-606.
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[8]	Dessalegn Getie Mihret and Getachew Zemenu Woldeyohannis. Value-added role of internal audit: an Ethiopian case study [J]. Managerial Auditing Journal, 2008, 23 (6): 567-595.
[9]	Xiaolong Qu and Bin Liang and Hsing Hung Chen. Research on the Value-added Role of Internal Audit [J]. International Journal of Higher Education Teaching Theory, 2020, 1 (4): 211-213.
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[15]	Lourens Erasmus and Philna Coetzee. Drivers of stakeholders’ view of internal audit effectiveness: Management versus audit committee [J]. Managerial Auditing Journal, 2018, 33 (1): 90-114.

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APA Style

Yushen Ma. (2021). Full Coverage of Internal Audit Based on Value Chain Analysis. Journal of Finance and Accounting, 9(6), 230-235. https://doi.org/10.11648/j.jfa.20210906.13

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ACS Style

Yushen Ma. Full Coverage of Internal Audit Based on Value Chain Analysis. J. Finance Account. 2021, 9(6), 230-235. doi: 10.11648/j.jfa.20210906.13

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AMA Style

Yushen Ma. Full Coverage of Internal Audit Based on Value Chain Analysis. J Finance Account. 2021;9(6):230-235. doi: 10.11648/j.jfa.20210906.13

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@article{10.11648/j.jfa.20210906.13,
  author = {Yushen Ma},
  title = {Full Coverage of Internal Audit Based on Value Chain Analysis},
  journal = {Journal of Finance and Accounting},
  volume = {9},
  number = {6},
  pages = {230-235},
  doi = {10.11648/j.jfa.20210906.13},
  url = {https://doi.org/10.11648/j.jfa.20210906.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210906.13},
  abstract = {In order to adapt to the requirements of corporate governance, internal audit must enhance its value and innovate itself to meet new challenges. The value of internal audit mainly lies in the improvement of internal value rather than the improvement of quantitative value. The improvement of internal audit value must be aimed at risk management and internal control. The core of internal audit innovation is the innovation of audit concept and audit thinking mode, and the basic foothold should be on the innovation of audit content, which is the full coverage of internal audit. Full coverage of internal audit refers not only to the full coverage of the audited entity, but also to the full coverage of the audit content. Internal audit should not only be limited to the flow of funds, but should jump out of the small circle of financial audit and march into the decision-making audit and strategic audit. The scope of internal audit must be extended to all aspects of enterprise economic activities. Full coverage of internal audit requires that internal audit must be value-added internal audit aimed at increasing enterprise value, which is value chain audit. Based on the value chain analysis as the breakthrough point, putting the internal audit activity into the organization's value chain, the author put forward that the tentacles of the internal audit should be thoroughly all the value chain analysis, and according to the type of cost drivers respectively constructed three kinds of value-added internal auditing mode, the structured audit mode, process-based audit model and nodal audit model.},
 year = {2021}
}

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TY  - JOUR
T1  - Full Coverage of Internal Audit Based on Value Chain Analysis
AU  - Yushen Ma
Y1  - 2021/11/10
PY  - 2021
N1  - https://doi.org/10.11648/j.jfa.20210906.13
DO  - 10.11648/j.jfa.20210906.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 230
EP  - 235
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20210906.13
AB  - In order to adapt to the requirements of corporate governance, internal audit must enhance its value and innovate itself to meet new challenges. The value of internal audit mainly lies in the improvement of internal value rather than the improvement of quantitative value. The improvement of internal audit value must be aimed at risk management and internal control. The core of internal audit innovation is the innovation of audit concept and audit thinking mode, and the basic foothold should be on the innovation of audit content, which is the full coverage of internal audit. Full coverage of internal audit refers not only to the full coverage of the audited entity, but also to the full coverage of the audit content. Internal audit should not only be limited to the flow of funds, but should jump out of the small circle of financial audit and march into the decision-making audit and strategic audit. The scope of internal audit must be extended to all aspects of enterprise economic activities. Full coverage of internal audit requires that internal audit must be value-added internal audit aimed at increasing enterprise value, which is value chain audit. Based on the value chain analysis as the breakthrough point, putting the internal audit activity into the organization's value chain, the author put forward that the tentacles of the internal audit should be thoroughly all the value chain analysis, and according to the type of cost drivers respectively constructed three kinds of value-added internal auditing mode, the structured audit mode, process-based audit model and nodal audit model.
VL  - 9
IS  - 6
ER  -

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Author Information

Yushen Ma

Department of Accounting, Shang Dong University of Technology, Zibo, China

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Plain Text BibTeX RIS

APA Style

Yushen Ma. (2021). Full Coverage of Internal Audit Based on Value Chain Analysis. Journal of Finance and Accounting, 9(6), 230-235. https://doi.org/10.11648/j.jfa.20210906.13

Copy | Download

ACS Style

Yushen Ma. Full Coverage of Internal Audit Based on Value Chain Analysis. J. Finance Account. 2021, 9(6), 230-235. doi: 10.11648/j.jfa.20210906.13

Copy | Download

AMA Style

Yushen Ma. Full Coverage of Internal Audit Based on Value Chain Analysis. J Finance Account. 2021;9(6):230-235. doi: 10.11648/j.jfa.20210906.13

Copy | Download

@article{10.11648/j.jfa.20210906.13,
  author = {Yushen Ma},
  title = {Full Coverage of Internal Audit Based on Value Chain Analysis},
  journal = {Journal of Finance and Accounting},
  volume = {9},
  number = {6},
  pages = {230-235},
  doi = {10.11648/j.jfa.20210906.13},
  url = {https://doi.org/10.11648/j.jfa.20210906.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jfa.20210906.13},
  abstract = {In order to adapt to the requirements of corporate governance, internal audit must enhance its value and innovate itself to meet new challenges. The value of internal audit mainly lies in the improvement of internal value rather than the improvement of quantitative value. The improvement of internal audit value must be aimed at risk management and internal control. The core of internal audit innovation is the innovation of audit concept and audit thinking mode, and the basic foothold should be on the innovation of audit content, which is the full coverage of internal audit. Full coverage of internal audit refers not only to the full coverage of the audited entity, but also to the full coverage of the audit content. Internal audit should not only be limited to the flow of funds, but should jump out of the small circle of financial audit and march into the decision-making audit and strategic audit. The scope of internal audit must be extended to all aspects of enterprise economic activities. Full coverage of internal audit requires that internal audit must be value-added internal audit aimed at increasing enterprise value, which is value chain audit. Based on the value chain analysis as the breakthrough point, putting the internal audit activity into the organization's value chain, the author put forward that the tentacles of the internal audit should be thoroughly all the value chain analysis, and according to the type of cost drivers respectively constructed three kinds of value-added internal auditing mode, the structured audit mode, process-based audit model and nodal audit model.},
 year = {2021}
}

Copy | Download

TY  - JOUR
T1  - Full Coverage of Internal Audit Based on Value Chain Analysis
AU  - Yushen Ma
Y1  - 2021/11/10
PY  - 2021
N1  - https://doi.org/10.11648/j.jfa.20210906.13
DO  - 10.11648/j.jfa.20210906.13
T2  - Journal of Finance and Accounting
JF  - Journal of Finance and Accounting
JO  - Journal of Finance and Accounting
SP  - 230
EP  - 235
PB  - Science Publishing Group
SN  - 2330-7323
UR  - https://doi.org/10.11648/j.jfa.20210906.13
AB  - In order to adapt to the requirements of corporate governance, internal audit must enhance its value and innovate itself to meet new challenges. The value of internal audit mainly lies in the improvement of internal value rather than the improvement of quantitative value. The improvement of internal audit value must be aimed at risk management and internal control. The core of internal audit innovation is the innovation of audit concept and audit thinking mode, and the basic foothold should be on the innovation of audit content, which is the full coverage of internal audit. Full coverage of internal audit refers not only to the full coverage of the audited entity, but also to the full coverage of the audit content. Internal audit should not only be limited to the flow of funds, but should jump out of the small circle of financial audit and march into the decision-making audit and strategic audit. The scope of internal audit must be extended to all aspects of enterprise economic activities. Full coverage of internal audit requires that internal audit must be value-added internal audit aimed at increasing enterprise value, which is value chain audit. Based on the value chain analysis as the breakthrough point, putting the internal audit activity into the organization's value chain, the author put forward that the tentacles of the internal audit should be thoroughly all the value chain analysis, and according to the type of cost drivers respectively constructed three kinds of value-added internal auditing mode, the structured audit mode, process-based audit model and nodal audit model.
VL  - 9
IS  - 6
ER  -

Copy | Download