The Research On Internal Audit Outsourcing Theory And Economic Consequences

This paper assumes that the internal audit is outsourced to certified public accountants,because many CPA have not the internal audit outsourcing sector. In general, a projectteam will be set after receiving outsourcing, and team members are basically the originalpersonnel engaged in external audit, so the second assumption is that from the originalpersonnel engaged in external audit work to carry out internal audit. Along with theincreasing market competition, enterprises are faced with the uncertainty of operatingenvironment is more and more big, people are increasingly demanding about the functionof internal audit. In this case, the enterprise or the internal audit department, increasinginvestment, introduce talents, establish perfect internal audit institutions, but the cost willbe high; Either directly have outsourced internal audit certified public accountants andother agencies to perform all or part of the internal audit function instead. In order to savecosts, optimize the structure of enterprise organization, more and more enterprises tochoose the externalization of internal audit. Internal audit outsourcing in a foreign countryhas been developed greatly, but have much cry and little wool phenomenon, in thedomestic research on internal audit carried out in full, on the one hand, on the other hand,in reality, little choice of internal audit outsourcing companies in the country.In order to reduce transaction costs, and other various costs of setting and operation ofthe internal audit institutions, optimize the allocation of resources, improve internal auditquality and efficiency, it is necessary to further encourage and improve the enterpriseinternal audit in our country the proportion of, before that need to be thorough andsystematic research and demonstrate the possibility and feasibility of internal auditoutsourcing in theory gives the basis of internal audit outside, in addition to the dialecticalview of the advantages of internal audit outsourcing level limitations, objectively analyzethe current rate on the low side of internal audit outsourcing in China, and put forwardcountermeasures accordingly.This paper mainly discusses the necessity of the internal audit outsourcing theory,theory of sufficiency, and the advantages and disadvantages of outsourcing of internal auditand its analysis. From risk management, under the management concept of risk-orientedinternal auditing with risk guidance external audit converge this trend, this paperemphatically analyses the adequacy of the internal audit outsourcing theory and advantages.External auditor’s professional competence has carried on the detailed analysis, concludedthat external auditors have stronger professional competence and higher professional skepticism and the deficiency of the internal audit outsourcing, respectively, from theenterprise level, the national government level, the certified public accountants firm levelSuggestions and improvement measures are put forward.