Abstract
The rapid development of the private economy in China has put forward higher requirements for a sound supervision system in the enterprises. However, compared to the sate-owned enterprises or listed private enterprises, because of the lack of the official constraints or guidance on the internal audit, the development of internal audit in unlisted private enterprises are still facing many problems. This paper conducted questionnaire-based investigation on the unlisted private enterprises in Yancheng of Northern Jiangsu Province in China, in order to obtain detailed information related to the internal audit of unlisted private enterprises. Through the analysis on the information gathered from questionnaires and the typical study on the case of a large-scale unlisted private enterprise, SD group in Yancheng, suggestions were put forward to improve the current situation of internal audit in unlisted private enterprises in Yancheng, which also can help to promote the development of private economy in Yancheng, and thus contribute to the economic development in Jiangsu, or even in the whole China.
Highlights
In recent years, China Securities Regulatory Commission has issued a series of regulations to lay further supervision on the listed enterprises
Internal audit has become an essential part of corporate governance, risk management and internal control, which plays an important role in the sustainable development of unlisted private enterprises
4.1 Establishment of Internal Audit Department According to the statistics collected from questionnaires, 73 unlisted private enterprises have already set up internal audit department
Summary
China Securities Regulatory Commission has issued a series of regulations to lay further supervision on the listed enterprises. Internal audit has become an essential part of corporate governance, risk management and internal control, which plays an important role in the sustainable development of unlisted private enterprises. Due to the insufficient awareness of the functions of internal audit, a large percentage of the unlisted private enterprises in China haven’t established independent internal audit departments. What’s more, the lack of regulation restraint and standardized guidance on internal control, internal audit and risk management leads to various problems in the internal audit of unlisted private enterprises, including the disordered organizational, insufficient staffing, and the limited internal audit scope. In 2007, due to the break of capital chain, the SD Group signed a restructuring agreement with Hong Kong BL Group Under this agreement, the BL Group acquired all the shoes manufacturing subsidiaries of the SD Group at a price of approximately 2.1 billion CNY. SD Group, the former King of the shoes manufacturing industry in China, sold all of the shoes related assets, and withdrew from the shoe manufacturing industry
Sign-in/Register to view highlights & summary 
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call