The Research On The Decision Process Of Internal Audit Outsourcing

In the late 1980s, in Western countries, in order to adapt to the wave of globalization, some enterprises reformed the organization and transformed the processes, and gradually outsourced some non-core businesses. In this background, the internal audit outsourcing quietly rose. At the same time, along with the rapid development of economic globalization and the deepening of reform and opening up forward, organizational and operational nature of the Chinese enterprises are becoming increasingly complex. In order to improve the operational efficiency of enterprises and for the enterprises to achieve effective supervision, internal audit in the enterprise daily management is becoming increasingly important. At present, a few companies have begun to try internal audit outsourcing. Due to the late start, researches on internal audit outsourcing are more concentrated in the feasibility and motivation and so on. This article tries to carry out related research from decision-making and implementation of internal audit outsourcing and discussion.Internal audit outsourcing includes two stages from internal audit outsourcing decisions to execution. This paper first elaborates internal audit outsourcing, then draws general corporate outsourcing business model, then builds internal audit outsourcing flowchart, and incorporates herein by this flowchart frame structure. This article is divided four chapters specifically addressing decision-making and implementation process of internal audit outsourcing. The decision phase of internal audit outsourcing includes analysis of the internal audit function and core capabilities, the content and form of decision-making and supplier evaluation and selection of internal audit outsourcing, respectively illustrated by the third chapter to the fifth chapter. The final stage of internal audit outsourcing is the implementation phase. This paper focuses on the implementation phase of the risk factors and control measures, which is discussed in Chapter VI. Chapter VII of the way through the case, the key elements of internal audit outsourcing decision-making and implementation process will be summarized in refining, with a strong inspiration. Chapter VIII is the conclusion of this article. This study points out the limitations of the work, while the future of the internal audit outsourcing is also prospected.