On The Disputation Of The Legal Countermeasures To Strengthen The Independence Of Internal Audit Of Listed Companies In China

The listed companies in our country are faced with numerous opportunities and challenges in the complicated international economic environment of current times. Sound corporation governance will push the company forward successfully in the complicated environment. With the continuing financial risk happened, people gradually pay more attention to the internal audit which is as one part of the corporation governance. Various countries issued bills, aims at complete the corporation governance and the internal audit, the most typical act is<The Sarbanes-oxley Act of2001>(SOA) of America. The key of the auditing is the independence, the same as the internal audit. The internal audit system of the quoted companies in our country exists many defects, the independence can’t be guarantee. We try to come up with some advices from the angle of law which is based on the analysis of the basic definition of the independence of the internal audit, the current situation of the system in our country and the regulation in SOA connected with the internal audit.This paper is divided into four parts to discuss the importance of internal audit independence and the legal countermeasures to strengthen the listed company’s internal audit independence of our country. The first part is the foundation of the theory, which complain the concept and connotation of the internal audit and the independence and analyses the factors which impact the audit independence of the listed company. The second part discussed the situation and the problem of the internal audit independence law system in the internal audit system in China. Through the analysis, we found that our internal audit system exists such problems: the legal standard system is not sound, no clear legal status, there are loopholes in legal responsibility provisions, and the personnel and organization establishment exists some defects which influence the independence of internal audit. The third part discuss centre on America’s SOA. through the analysis of the clause related to internal audit, we summarize some inspirations useful for the found of listed company’s internal audit law system. The forth part put forward some legal countermeasures which can strength the internal audit independence of the listed company in China, include build statute guarantee system, complete the set rules of internal audit personnel and organization set rules and so on.