The Correlation Reaserch Of Internal Audit Quality And Information Disclosure Of Internal Control

As one of the most important part of external disclosed information in the corporation,the information disclosure of internal control plays a vital role in reducing funding costs,solving the problem of information asymmetry, increasing transparency in businessmanagement and strengthening other investors’ confidence. Internal audit is a tool ofinternal control and internal control activities can not be carried out smoothly without it,which means that internal control and internal audit are indivisible, interdependent andclosely related. With the increasing competition in the market and the context of corporategovernance continuously improving while financial fraud getting worse, the joint effect ofinternal audit quality and information disclosure of internal control has becomeincreasingly prominent. The correlation research of internal audit quality and informationdisclosure quality of internal control has pivotal impact for enterprises to improvemanagement level and risk prevention capability in the process of business developmentand ensure the healthy and sustainable development of enterprises. Based on the the specialstatus of internal controls information disclosure within internal control and the closerelationship between internal audit and internal control, We can preliminary deduce thatinternal audit has considerable impact and practical significance for improving the qualityof information disclosure of internal control, increasing the operational efficiency andeffectiveness and promoting the modernization of corporation system. This paper, based ona comprehensive assemble of academic research from former scholars, combined with therelationship between internal control and internal audit and used the empirical evidencefrom A-share listed companies, attempts to use empirical methods to verify the relevancebetween internal audit quality and the information disclosure quality of internal control,thus to improve this area of research, and also hope that this study can provide empiricaldata to guide corporation to improve their internal control systems and internal auditquality.