A Research On Evaluation System Of Internal Audit Quality

In 2001, the financial fraud had broken in the company of U.S. energy giant Enron;On January 24,2008, the largest financial fraud scandal burst in the French bank's. The economic failure of a series for Fiduciary responsibility triggered the corporate governance issues. All the absence of internal audit function caused serious problems.Business collected wish a series of contracts.Because of the separation of ownership and management, the principal and agent has a inconsistent utility function. Under conditions of asymmetric information. Operators of "adverse selection" and "moral hazard"may harm the client's interests.To Improve the corporate governance structure in principal-agent relationship, efficiency in the pilot's condition,is to achieve effective control agent, to ensure that the interests of clients, to achieve the various stakeholders of effective checks and balances. Therefore, in this context, the internal audit had,But the financial fraud incidents still broke which descriptes the fact of Internal audit did not play its due role, Internal Audit Quality is not functioning, How to effectively evaluate the quality of internal audit, and further enhance its quality is particularly critical.Internal Audit Quality Assessment is to asses the entire process of internal audit and all aspects of audit,which enables the monitoring of audit results. Internal Audit Quality Assessment urges enterprises to achieve "self-discipline, "Its continuous and effective internal audit quality improvement is an indispensable component.Based on the quality of the evaluation system of internal audit study, the paper constructs a scientific evaluation of operational systems, to better guarantee quality control for audit. Taking into that there are many factors affecting internal audit quality, the effects of these factors separated and combined contributed to the different quality of the internal audit. Therefore, evaluation of the quality of internal audit, in the final is to evaluate all factors of the quality of internal audit, to Identify the source of the problem by evaluating. Targeted to enhance the quality of internal audit. Based on this third part of this article summarizes the impact of audit quality factors. Including the audit environment, audit resources, audit reports in three areas. In the next evaluation system, focus on the model described method, Balanced Scorecard, Six Sigma methods and improved method. And the application of each method and some of the advantages and disadvantages. Finally, the formation of the internal audit quality evaluation system, It includes four major elements:evaluation of subject, object evaluation, evaluation indicators and evaluation methods.The train of thought:Audit quality is the life of the audit profession, in order to helping organizations achieve their goals effectively, internal audit should has a right location, a vision for the organization to increase value,and a clear roadmap to achieve this vision. Except above,the most important is the implementation of internal audit to meet certain standards.which could conduct a reasonable evaluation to the effect of the implementation of internal audit, and committ to sustained and effective internal audit to improve the enterprise. This paper starts from the reality of society, research the reason why internal audit function is getting more and more attention while it does not create value in itself,and this is the introductory part of this content to be talked about.In this paper, the main line is from phenomena to essence,and get the "demand" from essence. Along the main line, it is not difficult to find such a fact. Since the internal audit quality assessment is the internal audit function to achieve the necessary and indispensable protection. Enterprises need high-quality internal audit, this demand is bound to produce another need:What kind of internal audit is high quality, How to evaluate it? So the structure of internal audit quality Evaluation System is the contents.of this article.This article's organization:analysis the phenomenon of more and more attention to internal audit in enterprises as the starting point of Introduction.and then give a series of financial fraud things,pointing out the the absence of the internal audit function which is an aspect of corporate governance. Secondly,the paper indicates there must be quality control for the internal audit assurance in order to ensuer the effcet of internal audit function. As tne main method of control internal audit quality and improve program,Internal audit quality evaluation plays an important role. The contribution of this paper has two aspects in the following:First,the theory and practice in Internal Audit Quality Assessment will provide a reference for our evaluation system to establish the internal audit quality.Second, the internal audit quality evaluation system will provide some help for the relevant enterprises in the control of the quality of internal audit.This limitation of the paper is the evaluation system has not been associated with the current testing and application, Its usefulness and stability needs to be further researched.