An Empirical Study Of Internal Audit's Impacts On Accounting Information Quality

Accounting information quality has attracted a wide attention nowadays. It is urgently needed to improve accounting information quality in China, as the problem of accounting information distortion has caused immeasurable damage to the country's economy, politics and culture. There are many factors affecting the quality of accounting information, including factors in the social context such as politics, economy, and laws. This paper investigates influences of internal auditing on accounting information quality. As one of four backbones of corporate governance, internal auditing has natural ties with finance, and can exert different influences on accounting information quality. This paper makes empirical studies on these influences in terms of establishing an internal audit function, and its subordinate level and effects of running.In this paper, we find that: 1. Listed companies with internal auditing departments have improved accounting information quality. 2. Companies with higher subordinate level of internal auditing departments have better quality of accounting information. 3. Listed companies with better running effects of internal auditing departments have higher improved accounting information quality.This paper takes a try of empirical studies on influences of internal audit on accounting information quality and makes suggestions for companies to improve their accounting information quality through optimizing organizational structure, promoting the subordinate level of the internal auditing department, and rationalizing the running effects of the internal auditing department, which provides new approaches of improving accounting information quality.