The Impact Of Internal Audit Quality On Management Fraud

Listed companies as the public enterprises to raise funds, has a great influence on society, bearing the important task for the utilization of social resources to promote economic development, is the important carrier to the healthy development of the securities market. However, over the past 20 years, shocked by the successive exposure of a series of major fraud cases at home and abroad, and the outbreak of a series of fraud case further shows that a lot of fraud, fraud, illegal behavior of listed companies are related to the management. Higher, concealment of the cases of management fraud means more complicated, involving more and more bad, to the capital markets, investors, creditors and social public caused irreparable economic loss and mental damage, hit stakeholder confidence and enthusiasm, hindered the healthy growth of the capital market. Management fraud, therefore, means and consequences caused high attention from all sectors of society, the traditional supervisors-auditors and board members play a regulation seems to have no effect, this raises the related mechanism of the reflection and discussion, to seek more effective enforcement mechanism, academia and relevant regulatory authorities to focus on internal audit. Since 2003, China has introduced a series of regulations on internal audit, has to improve the regulatory environment of listed companies, thus achieve the boss of the company's fraud prevention and governance of the goals. Led the author to the influence of the internal audit of quality management fraud of listed company's interest. High quality of internal audit is not really have inhibition to management fraud, at present only in the theoretical circle recognition, in practice the lack of data support. So study the effect of internal audit of quality management fraud has become a practical and meaningful topic.For this reason, this text set about from the internal audit quality, study the internal audit quality for management fraud. In this paper, combining the basic theory of internal audit and management fraud, select the shenzhen stock exchange from 2011 to 2014, 110 management fraud of listed company's data, according to 1:1 matching 110 of management fraud companies, using logistic regression model, from the independence of the internal audit department, scale, professional competence, and internal audit system of normative four aspects discusses the internal audit quality play a role in inhibition of management fraud.The results show that the internal audit quality is negatively related to the behavior of management fraud. Among them, the independence of the internal audit department and scale as well as the internal auditor's professional competence and management fraud is significantly negative correlation, but the internal audit system standardization and the tendency of management fraud, no significant relationship in our country, the listed company and didn't get the effective implementation of internal audit system, is not implemented. Aiming at the problems in this paper, the research conclusion and, eventually to improve the quality of internal audit and the problems existing in the relevant policy Suggestions are put forward. In this paper, to perfect the system of internal audit in our country, in turn, strengthen the supervision of listed companies has certain guiding significance to the management to prevent fraud.