Research On The Impact Of Internal Audit Model On Corporate Governance In Listed Companies

The corporate financial scandals has frequently exposed to the public in the world in the late 20th century and 21st century. It seemed that the traditional supervisor-the auditors and board members were asleep at the gate of regulation in this series of corruption scandals, so people have gradually turned to pay attention to the internal audit. At the same time, it was the outstanding performance of vice president of the Internal Audit Department-Cynthia that made the internal audit the center of attention, and this reveals that the internal audit plays an important role in corporate governance. In order to play a role in corporate governance, the internal audit should enter the accountability of shareholders, board of directors and senior managers. That is to say, the model of internal audit has something to do with the role that internal audit plays in corporate governance. Which kind of internal audit model can play the role of corporate governance most effectively? This has raised significant attention from regulators and investors, and has been a subject which needed to be studied.Nowadays, academic circles in China conduct a series of useful research and exploration on the effects of internal audit model on corporate governance. However, most of the research uses the method of normative analysis, and some research which uses the method of positive analysis is not matured. With the use of combine with normative and positive study methods, this paper gives relatively comprehensive study on the role of internal audit model in the corporate governance in the aspects of accounting information quality and enterprise value, and gives some suggestions of the establishment of internal audit department based on the conclusions.The paper is divided into the following four parts:The first part is the introduction. This part gives a general outline of the background and significance of the research, the domestic and international research trends, the ideas and methods of the research and the innovation and the deficiencies.The second part is the foundation of the paper. Firstly, we briefly introduce the basic internal audit model, and combs basic theories of influence of internal audit model on the corporate governance systematically.Secondly, combined with the status of the internal audit model of listed companies, the paper analyze the mechanism of influence of the internal audit model on corporate governance, which provide necessary basis and pave the way for the following research.The third part is positive study of the influence of the internal audit model on corporate governance. Based on the research above, the paper establish the model of positive analysis,select the IPO companies of 2006 to 2008 as the study sample, use the method of multivariate regression analyze the influence of internal audit model on corporate governance in the aspects of accounting information quality and enterprise value.The fourth part is the conclusions and recommendations which reached this conclusion of the study and suggested the proposals internal audit model in accordance with norms and empirical studies.The characteristics and innovation of this paper is using both the methods of positive and of normative analysis on the study of the impact of internal audit model on corporate governance. The theoretical part of the paper analyze that the internal audit model fulfill the objectives of optimizing corporation governance through perfecting the structure of corporate governance, improve the quality of accounting information and enhance enterprise value. The empirical research part of the paper use the listed companies as sample, select latest statistics and analyze the influence of internal audit model on corporate governance in the aspects of accounting information quality and enterprise value, Which does a more comprehensive analysis of influence on corporate governance, and give suggestions based on the results.