The Research On The Outsourcing Of Internal Audit Based On The View Of Corporate Governance

The outsourcing of internal audit has aroused extensive concern by scholars in recent years; it has become a hot topic in the academic and professional word. Internal audit is part of corporate governance, it is highly important to the corporate governance when internal audit is effective. With the deep study of corporate governance and the development of methods for auditing, the relationship between internal audit and external audit has become more and more close, so that there is a trend of convergence, such as outsourcing internal audit. Outsourcing internal audit can enhance audit independence, improve audit quality to a certain extent. However, the issues that what the impact to corporate governance is by outsourcing internal audit, whether internal audit can outsource or not, how to outsource, are requiring urgent solution.Based on the common theory of internal audit and corporate governance, the thesis firstly analysis functions of internal audit in the corporate governance. But the actuality displayed that the function of internal audit was not exerted fine. The outsourcing of internal audit has advantages in strengthening the function, so it becomes a new trend of internal audit. Outsourcing depends on the correct and effective decision-making. Drawing on foreign experience in outsourcing internal audit, the thesis discusses the forms of outsourcing, and builds decision-making models of internal audit outsourcing by AHP, trying to provide an effective method both for theoretic and practice fields. Finally by introducing the example of internal audit outsourcing, the paper analysis the prospect in developing internal audit outsourcing in China.Against the background of corporate governance, studying on the outsourcing internal audit can speed up the development of internal audit, improve the operating efficiency of the audit, promote its functions, ensure the factcity and accuracy of the information disclosed, protect shareholders and the interests of stakeholders and establish market confidence, enhance the competitiveness of enterprises and thus promote the socio-economic development and progress.