A Decision-making Study On The Internal Audit Outsourcing Management

From the perspective of the entrusted economic responsibility, the management,shareholders and investors have more demand due to the ever-increasing managementneeds and risk consciousness. The domestic internal audit has a late start so that thedevelopment is Imbalanced and the quality and capability of the staff need improving,resulting in an inefficient internal audit. If we hold a correct view of outsourcing theinternal audit, we will overcome the weakness and promote the efficient function ofinternal audit.Based on the Agency Theory, Transaction Cost Theory and Core Competitive Theory,which are the fundamental theories of the issue of internal audit outsourcing, this thesisattempts to analyze the internal drive for outsourcing the internal audit. By the analysis ofthe mode, content, the choice of service providers and the risk-control strategy, the thesisfurther discuss how to make a reasonable decision of the internal audit outsourcing.Through a sample study of Bank S, the thesis introduces the implement procedure ofoutsourcing the internal audit and analyzes the existing problems in the procedure.Finally,it proposes some suggestions for improvement of internal audit outsourcing.