Research On Internal Audit Outsourcing Based On Co-sourcing Internal Audit

Nowadays the competition of enterprise market becomes more and more drastic in our country. Management of enterprise pays more and more attention to the effectiveness of internal operating process and to improving the level of risk management. Therefore, the internal audit of enterprise is more and more valued. While internal audit in our country starting late, it has not formed a perfect internal audit system. With a small number of high-quality internal auditors, internal audit as a whole can not satisfy the needs of the development of enterprises. By means of internal audit outsourcing, enterprises can not only make use of professional knowledge and rich experience of external institution, but also save personnel costs, increase operating profits. But our current law states that large and medium-sized enterprises and listed companies must establish internal audit institutions. If the internal audit function of an enterprise is completely delegated to external agencies, it will bring a series of risk to the enterprise. Based on above-mentioned, it is not realistic to develop vigorously the whole internal audit outsourcing model in our country. So adopting co-sourcing internal auditing model is the ideal choice.This paper, focusing on co-sourcing internal auditing model research, is divided into five parts: The first part is exordium, introducing the purpose, significance of this research and the research situation at home and abroad; the second part is theoretical principle of internal audit outsourcing, introducing basic concept about internal audit outsourcing, and stating theory basis of internal audit outsourcing from three perspectives: principal-agent theory, transaction cost theory and organization management theory; the third part analyses the advantage and disadvantage of adopting co-sourcing internal audit from enterprise angle, and explores the feasibility of adopting co-sourcing internal audit from external institutions and social environment aspects; the fourth part introduces decision-making analysis and risk control of co-sourcing internal audit, and makes contrastive analysis between two cases; the fifth provides justification commends on developing co-sourcing internal audit in our country by means of analyzing the development of internal audit and the feasibility of developing co-sourcing internal audit of our country. Hoping this paper can enrich internal audit research in our country, and can offer reference for internal audit outsourcing of enterprise.