Study Of Internal Audit Quality Of The Listed Companies

The function of internal audit has been recognized both at home and abroad.Enterprises pay more and more attention on internal audit in order to perfect thecorporate governance and enhance corporate value. Although there have been awealth of information about internal audit, we still have space to do some furtherresearch.Firstly, we reviews the existed study about internal audit and do theoreticalanalysis about the factors affect the internal audit quality, including the board ofdirectors, the senior management and the external audit. Furthermore, based on thelisted companies which disclosed information in detail, we try to find the relationshipbetween internal audit and the external audit fee.This paper select some listed companies in Shenzhen Exchange between2009to2010as the study sample. And then, we establish the empirical model one to verifythe factors which affect the internal audit quality. In order to find the correlationbetween internal audit quality and audit fee, we select the internal audit quality asindependent variable and establish the empirical model two. With the help ofcorrelation analysis and regression analysis, we would get the conclusion. From thetheoretical analysis and the empirical results, we find the information of seniormanagement and the external audit really affect the internal audit quality. There isnegative correlation between internal audit quality and audit fee. It suggested thecorporate can enhance the internal audit quality to reduce audit fee.The paper use empirical model to complement the theoretical analysis and selectthe listed companies in our country as the sample. The result is more suitable for theactual situation. We combine the internal audit quality with the audit fee wouldprovide another idea for research.The end of the paper give some suggestions of how to enhance the internal auditquality. Companies could try to improve the relevant institution or strengthen theknowledge and attitude of internal audit, and enhance the interaction between internalaudit and external audit also can help to optimize the quality of internal audit. As thelack of detailed information, the result could not represent the whole situation ofmarket and it needs to be perfect in future.