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.