The Empirical Study On Internal Audit Quality And Business Performance

With the acceleration of global economic integration and economic development, the importance of enterprise management is increasing. Financial fraud issues like the Enron event and Yinguangxia event indicated that only extern audit has been unable to meet the demand of modern enterprise management and internal audit has become a significant tool to guarantee enterprise's management. As the rapid development of domestic market economy, the listed enterprises request a higher demand on internal audit and also begin to actively use internal audit as a tool to enhance enterprise operation and management ability. In the process of enterprise operation and management, internal audit is a special kind of comparative evaluation mechanism to promote the increment of business performance, which exerts a positive impact on business performance.In this paper, the research object is the relationship between internal audit quality and business performance with using the methodology of integrating theory with practice. Based on a large number of domestic and foreign literature, this paper researches the influence factors of enterprise internal audit quality on the basis of theoretical analysis, discusses the ways of internal audit quality impacting business performance, and build an empirical research model to analyze. About the empirical research model, it selected 2012-2014 annual reports of some Shenzhen listed enterprises that have good quality of internal audit disclosure, and used multivariate regression model analysis and test to do empirical research on the relationship between internal audit quality and business performance. The empirical results shows that the relationship between internal audit quality and business performance is a significant positive correlation, that is, the improving internal audit quality enable to enhance enterprise value and business performance, that is an significant factor to enterprises achieve sustainable development. Through combining the empirical findings and internal audit status of domestic listed enterprises, this paper proposes the suggestion for taking advantage of internal audit to enhance business performance, including strengthening internal audit resource, ensuring internal audit's independence, evaluating the results after internal audit, improving internal audit system.