Research On The Influence Of The Effectiveness Of Internal Auditing On CPA Auditing Quality

Recent years, Numerous financial scandal and fraud have shown that even the CPA auditing as an independent third-party is difficult to maintain the independence of the professional requirements. In this case, enterprises should put their focus on the external environment, but also pay their attention to the adequacy of the internal control system. Internal auditing is an important part of enterprise’ internal control, but also the main means of supervision and evaluation of internal control. The overlapping responsibilities of internal auditing and CPA auditing is to ensure the fairness and legality of accounting information, ensure business operations and management in strict compliance with relevant laws, ensure that accounting information disclosure can meet the actual business operations, ensure accurate reporting and verification of assets enterprises own."Certified public accountants auditing standards" and "internal auditing standards" and others related laws of China stress the importance of good mutual cooperation between internal auditing and CPA auditing. No.1411of "certified public accountants auditing standards" clears the specific implementation measures of mutual cooperation between the CPA auditing and internal auditing. No.2303of "internal auditing standards" makes a provision of coordination between internal auditing and external auditing, and no.2307for internal auditors’evaluating of external auditors’work quality. Based on this, how the effectiveness of internal auditing will affect CPA auditing quality, became the focus of this study.This study took research background, research purpose and significance, research status quo at home and abroad as the breakthrough point, described the internal auditing and CPA auditing’s basic theory and theoretical basis, and then discussed the influence of the effectiveness of internal auditing on CPA auditing by theoretical analysis, situation analysis and questionnaire analysis. Based on the above analysis, this study considered effective internal auditing helps improve CPA auditing quality, and lower effectiveness of internal auditing does not regularly affect CPA auditing quality. On this basis, this study made assumptions and established a multiple regression model to do empirical analysis, and found that the effectiveness of internal auditing and CPA auditing quality have significant correlation overall; the effectiveness of internal auditing has a critical range of value, very positively correlated with CPA auditing quality above the value got from the range and positively correlated with CPA auditing quality with lower significance under the value got from the range. Based on the higher significance correlation of internal auditing and CPA auditing when internal auditing is effective, this study put forward some targeted measures to optimize the effectiveness of internal auditing and improve CPA auditing quality.