Study On Internal Audit Outsourcing Of China’s Listed Companies

In recent years, the status and role of internal audit in corporate governance hasgradually been recognized in the industry, sound corporate governance largely depends onthe company’s internal audit effectiveness, it has been with the board of director,management, external audit together constitute the cornerstones of corporate governance.But with the audit system changes, both internal and external audit in audit techniques andthe contents have been coincidence, this makes their relationship to grow closer, internalaudit outsourcing abroad began to pop up.Because internal audit of listed companies inChina started late, the system has congenital defects and the quality of personnel is nothigh, some even become decorative, the attention of the lack of leadership of the company,it is difficult to play its due role. Difficult to grow up in the case of short-term internalaudit of listed companies in China to learn from the advanced experience of foreigncountries, combined with the actual situation of China’s listed companies, and the timelyintroduction of internal audit outsourcing, can effectively compensate for the lack ofinternal audit on their own strength, and to maximize the play internal the role of the audit.Firstly reviewed research at domestic and abroad on internal audit outsourcing, learnfrom the results of previous studies on the basis of combining the characteristics of China’slisted companies, the qualifications of the internal audit outsourcing, meaning andtheoretical basis for doing analysis, and statistical data of listed companies, describes thestatus of foreign enterprises and domestic listed companies internal audit outsourcing andthe help of a foreign success stories, pointed out that China’s listed companies in theprocess of implementation of the internal audit outsourcing, attention to the coordination ofinternal and external audit and the conservative trade secrets, according to local conditionschoice to outsourcing. The main part of this paper, presented in addition to the effectiveness of the internal audit assets dedicated internal audit frequency and auditcommittee, the level of inherent risk, the degree of subjectivity and geographical discretetask will have an impact on internal audit outsourcing decisions. Based on this April2010the ministry of finance and five ministries jointly issued "the enterprise internal controlsupporting guidance" and in September2012the ministry of finance issued by theenterprise internal control standard system in the implementation of the related probleminterpretation no.2"listed companies on China’s internal audit content and different lifecycle and the choices of the strategies bag made correlation analysis.