The Research On The Problems Of Internal Audit Outsourcing And Orientation In Universities

As an important part of self-discipline and self-supervision system, internal audit is a critical element for the existence and development of an organization. The traditional internal audit is usually provided by internal audit department which is specially established in enterprises. But with the development of economic management and audit, some foreign enterprises choose to purchase internal audit services from external auditors, i. e. the trend of internal audit to externalization appears. outsourcing of internal audit, as a new trend in the developing process, is the result of the rational choice made by enterprises, in the meantime also represents the competition between internal audit departments and external audit organizations. Looking outsourcing of internal audit correctly will contribute to maximum of internal audit functions.The author, in the position of audit for the university for years, is closely concerned with the present situation of internal audit in universities and largely aware of the significance of reinforcing internal audit. Learning from the new trends of the international internal audit, this thesis discusses the externalization and orientation of internal audit in universities. Firstly, this thesis introduces the current developing condition and the expression of the externalization of internal audit in the western countries. On the basis of the re-orientation of the function, content and position of internal audit, it analyses the reasons of externalization of internal audit. In accordance with the present situation and features in domestic higher education audit, this part also discusses the feasibility and significance of the externalization from three angles of executants of externalization of internal audit, objective body of internal audit and audit environment in our country. Secondly, through helping people step out of the wrong cognition zone, this thesis points out that contrary to a weakening or a replacement of the internal audit, the externalization means a wider stage for coordinating the external audit and the internal audit. Therefore, internal audit in universities should be oriented properly in the trend of externalization. On one hand they should set up complete internal audit department, on the other hand they should ensure the smooth outgoing of the externalization of internal audit with the coordination of the external and internal audit. Finally, this thesis takes as an example the construction project audit in the university contracted to external auditors to demonstrate the practical operation and manipulation of the whole process and analyzes the possible problems and countermeasures in the process. The analyses show that the externalization of internal audit in universities not only is feasible but also can solve the current conflict between supply and demand, which can help make the most of the internal audit organization and ensure that the work runs with high quality and efficiency.