A Case Study On The Internal Audit Outsourcing Of Small And Medium - Sized Enterprises In China

Strong Internal audit is an integral part of of internal control.large enterprise has been aware the necessity of internal audit system in the course of its development,and almost all of them have already had an effective internal audit system.Most small and medium enterprises is still in the start-up period,did not realize the importance of the internal audit system. Some of small and medium enterprises realize the importance of internal audit, but limit in Firm size, allocation of talent, the amount of money, was difficult to establish a sound internal audit system on their own resources.By outsourcing the internal audit system construction work entrusted to professionals with the knowledge and ability to establish a sound internal audit system is a safer way of small and medium enterprises.The concept of internal audit outsourcing began to appear in international arena in the 1960s,European companies have begun large-scale development of internal audit outsourcing starting in the 1980s.Now they have a comprehensive of internal audit outsourcing.In contrast China,internal audit outsourcing still in its infancy.AS the demand side,small and medium enterprises did not awareness the importance of internal audit outsourcing, it is urgent to give proper guidance to small and medium enterprises and regulate the processes of internal audit outsourcing,In recent years,research on internal audit outsourcing is gradually increasing,but the scope of the study are limited,mainly in the theory of internal audit.This article attempts to combined internal audit outsourcing whit economics theory of supply and demand, standing on both sides of supply of accounting firms and demand of small and medium enterprises to analysis the feasibility and ways to promote internal audit outsourcing.Content of the article is divided into six parts:The first chapter is the introduction part,It introduces the present status of research on internal audit outsourcing, and the significance methods and ideas of this study.The second chapter described the meaning,theoretical and development process of the internal audit outsourcing,at the same time it introduces the basic model of internal audit outsourcing,and also lists the advantages and disadvantages of internal audit outsourcing.The third part mainly from the view of supply and demand to explore the feasibility of small and medium enterprises to outsourcing internal audit.Chapter Four is a case analysis about a company named H, deconstruction the process H company implementation of internal audit outsourcing.The fifth chapter is revelation of case, summarizes the successful experience and shortcomings of internal audit outsourcing about H company,provide a reference for others. The sixth chapter is a summary of the thesis,and also prospecting for the direction of development of.internal audit outsourcing.