Researching On Auditor's Business Development Of Internal Control Audit

In response to repeated outbreak of financial fraud, the US Congress enacted the SOX Act in 2002, in order to ensure the resposibilities of the US public company for their own maintenance effectiveness of internal control and auditor of public companies for the effectiveness of internal control. Ministry of Finance and other five ministries of China have jointly issued the "basic norms of internal control" in2008, and its supporting guidelines in 2010, which provides an opportunity for the development of the internal control audit and creates the requirements of internal control audit. Internal control audit showes a pilot development trend in audit services industry, so the key effects of internal control audit are worth of attention.The paper reserches the A-share companies in main board in China from 2008 to 2013. From the internal audit market supply side, the paper describes internal control audit expertise and promotion efforts, researches the relationship between these features and the acceptance of internal control audit,and further explores the influence of the degree of market. The paper alse selects a typical case of Ruihua Certified Public Accountants expanding the business of internal control audit, and analyzes the role of inernal control audit in estabishing internal control mechanisms.The study found:(1) the higher expertise of internal control audit of auditor, the more companies are conducive to carry out internal control audit; (2) the greater promotion efforts of internal control audit of auditor, the more companies are conductive to carry out internal control audit; (3)the degree of market will effect the relationship between expertise of the internal control audit and the acceptance of internal control audit; (4) the degree of market will effect the relationship between the promotion efforts of the internal control audit and the acceptance of internal control audit.The paper reveals that auditors are the key driving force in control audit services market. Under the policy background batch of classified internal control audit, auditor play a key role in promoting voluntary internal control audit,and promote the development of internal control audit market.This study enriches the existing literature of auditor's business development and internal control audit.