Risk-oriented Internal Audit in the ERM Framework

According to Chinese Enterprise Internal Control Basic Requirements, the listed companies in China needed to establish and operate the risk management-oriented internal control system. From the influences of the establishment of risk management framework on internal audit, this article discusses several ideas on enterprises’ transition from traditional internal audit to risk-oriented internal audit. Enterprise risk management (ERM) as a risk-oriented internal audit of the main business, internal auditors are not involved in the process of the establishment and operation of ERM framework. Risk-oriented internal audit’s core role in relation to ERM should be to provide assurance to management and to the board on the effectiveness of risk management. The problems that the risk-oriented internal audit should pay attention to are both responsibilities and independence.