The Research On The Outsourcing Of Internal Audit Based On The View Of Function

Internal audit had a history of several centuries until now, it shaped and developed gradually as a specialty subject since the International Institute of Internal Auditors (IIA) was established in 1941. Internal audit was came into been and developed along with accountability. The development of internal audit was dynamic, it including theory development and practice development. Outsourcing of internal audit was appeared as a practice in some western countries in last century 90's.This paper mainly researches the issue of outsourcing from the view of internal audit's function. Firstly, it defines the new functions of internal audit at present according to the accountability, and then it proposes several pivotal factors to realize these functions: independence, specialized competence and cost-benefit principle. But the actuality displayed that the function of internal audit was not exerted fine because the pivotal factors was wanting. The outsourcing of internal audit also was the result of accountability's development as the development of internal audit's organization form. When the accountability developed from financial responsibility to management responsibility, internal audit was assigned higher request, the primary organization form of it was not competent because of its moving efficiency and effect. Whereas, the exterior accounting firms provided internal audit service at lower cost, higher independence, stronger capacity of specialty, and they have more motivities to do this owing to number one.The outsourcing of internal audit arised overseas at first, generally speaking, it appeared less interiorly attribute to the straggle of internal audit'development. We make a questionnaire about the actuality of outsourcing in domestic by instance of overseas. Through the investigation and analysis, we draw a conclusion that outsourcing can strengthen the function of internal audit by influencing the key factors. In addition, we briefly discuss the risks and obstacles in the actualization of outsourcing, and put forward some implementary advices for reference.