Research On The Influence Of Internal Audit On University Governance Performance

Since the1990s, the development of higher education in China is rapid, and the resource for higher education in all aspects has grown too. But there is no obvious improvement in the quality of public education, the problem of inefficient use of public resources has been much contested. Besides, in recent years, cases of corruption of public institutions of higher education in China become more and more, with an increasing amount of money and range of officers involved, such as the case of Wuhan University Zhaofang Chen in2009. The existence of these problems in higher education, in the final analysis, is due to the serious problem of internal governance of public institutions of higher Education in China. In2010, the State Council issued the "Long-term Education Reform and Development Plan", and the requirement of improving the modern University system with Chinese characteristics has been put forward. Since then Chinese public colleges and universities began a vigorous reform of eliminating administration in public institutions of higher education, and it’s main objective is to improve university governance structure and enhance the performance of university governance.The internal audit as an important part of university governance structure, it’s important role of university governance has been recognized by researchers at home and abroad. In the practical work of university governance in China, almost all of the affiliated university set up an internal audit department, then why the problems such as corruption, lack of quality and inefficient exist? Because the Internal audit department did not carry out its functions, or because the set of internal audit department in the public institutions of higher education is just purely for compliance purposes, and did not substantially effect?Based on the established research of the university internal audit and college performance based on the data from universities directly under the Ministry of Education, We verified whether the quality of internal audit of the universities has practical significance for the universities’ governance performance, and discussed the affecting factors in actual work of the internal audit department, in order to promote the development of university internal audit and improve the university internal governance structure, and ultimately come to the healthy development of colleges and universities.The paper reviewed the relevant research results at home and abroad, found that the research on the performance of university governance began in the late1970s, and the majority of researchers believe that on behalf of the university governance performance is personnel training and scientific research results or the efficiency of resource use. They have do the work from the training costs, raw relationship between cost and governance performance, university performance evaluation index system or data envelopment analysis (data Envelopment analysis DEA) to the performance of colleges and universities.Because Chinese higher education has been the administrative management, coupled with the development and influence of management and economics relatively later than most foreign countries, so the performance evaluation of colleges and universities just be raised in recent years, the majority of empirical studies used DEA method to evaluate university performance, and the form of university governance performance, besides personnel training and scientific research, some researchers proposed adding service to the community, to make the evaluation more comprehensive and applicable to the characteristics of Chinese colleges and universities.In this paper, we analyzed the theory of Internal Audit and university governance, and share the ultimate goal of university governance and internal audit are closely interrelated and mutually reinforcing; internal audit functions added value to it’s organizations and internal audit supervision, evaluation and prevention have a great role in promoting governance in colleges and universities, also contribute to the improvement of university governance performance. On this basis, this study assumes that the better internal audit quality, the better performance of university personnel training; the better internal audit quality, the better scientific research performance.In order to verify the above hypothesis, we designed two empirical models, using the output of university personnel training and scientific research as dependent variables, and the quality of internal audit as the explanatory variable, and the total size of the college assets as scale control variables, education funding income for the year as input control variable. We use the data from69colleges and universities directly under the Ministry of Education as the basis for empirical research and analysis.After the study, we found that:the quality of internal audit and university personnel training performance has a significant positive relationship, that means where the internal audit quality is better, the more prominent university personnel training performance is; internal audit of university has a significant positive impact on scientific research of the university, which means that the better the quality of internal audit is, the better the results of scientific research is. Verify the hypothesis1and hypothesis2, indicating the important role of internal audit quality for university governance performance.From the conclusion, we put forward two suggestions on the improvement of the quality of internal audit and the policy. Mainly contained the specific recommendations to improve the quality of university internal audit, including the perfect set of internal audit institutions to improve the ability of the internal audit work and a correct understanding of the three aspects of the internal audit function in university; another one is the policy implications, including the paper argues that the work of the university internal audit should be set implementation of the inspection system, the internal audit department staffing minimum threshold requirement and the use of the internal audit findings give full play to the guidelines, policies and regulations to ensure the quality of the internal audit and the internal audit function well.