Rational Analysis On Internal Audit Outsourcing

At the end of the eighties of the 20th century,some international enterprises started to contract their internal auditing services.The phenomenon of internal audit outsourcing has become extremely popular in 1990's,and has also caused the concern of the academic and the practice.However,at the beginning of this century, there is a new change of this phenomenon.More and more enterprises provide partial internal audit services,that is,they give up total outsourcing tending to use co-sourcing.Now,the phenomenon of return of internal audit outsourcing is developing.The dissertation begins with some of concepts about internal audit outsourcing, analyzes the theoretical basis of internal audit outsourcing,and summarizes the debate on whether outsourcing or not.At the same time,it discusses the return of internal audit outsourcing,and finally it makes prospects of the development to our country's outsourcing the internal audit.Based on consulting a great number of references,and studying the current research conclusion of internal audit outsourcing,the dissertation integrates the present situation concerning the research home and abroad,endeavors to provide some innovative viewpoints.Firstly,internal audit is very important and internal audit outsourcing has also brought the positive effect to enterprises.Hence,the benefits of co-sourcing will become obvious gradually.Why? Because the type of internal audit outsourcing can combine the advantages of internal audit and external audit.Secondly,the dissertation analyzes the return of internal audit outsourcing.The reform ofⅡA is internal cause of the phenomenon,and external cause is Sarbanes-Oxley Act of 2002 which limits internal audit outsourcing.But the return of internal audit outsourcing features in the widespread adoption of co-sourcing and a more important role which internal audit plays in corporate risk management.Finally,as an important part of corporate governance,internal audit is developing following the corporate growth.Therefore,due to the theory of corporate life cycle,an analysis on the type of internal audit outsourcing in China is developed to conclude that we should follow the law and choose different types in different periods of enterprises,and pay more attention to the risk management of internal audit outsourcing in China.