A Study On The Effect Of Internal Audit Outsourcing On The Audit Independence

Internal audit outsourcing refers that the organization will be all or part of the internal audit functions in the form of a contract to the outside organization such as the accounting firm or other professional bodies.In the late 1980 s,internal audit outsourcing became popular among western enterprises.The proportion of internal auditing outsourcing in the global enterprises in 2013 increased from 63% in 2007 to72%,indicating that internal audit outsourcing has become the choice of most enterprises.With the development of economic globalization,if enterprises want to survive in the fierce market competition,they must find more effective and effective management methods from the internal management of the enterprise,and the internal audit begins to pay attention.However,due to the relatively late development of our internal audit,there are many problems in the implementation of internal audit in our country,such as unreasonable organization,insufficient staff and professional competence.To meet the development needs of enterprises,internal audit outsourcing is an effective way for enterprises to improve the quality of internal audit and improve enterprise management.Internal audit outsourcing in China has a low degree of development,there are still some problems,including outsourcing a very important part of the selection of outsourcing companies.The enterprise should consider whether it affects the independence of the annual financial report audit.This thesis is divided into five parts.The first part is the introduction,the background and the significance of the research,the theoretical basis,the research ideas,the frame and the research method,the innovation of the article,etc.,And summarizes the domestic and foreign research status of internal audit outsourcing.The second part is the theoretical analysis of internal audit outsourcing.Firstly,it defines the internal audit outsourcing,discusses its content and form and the advantages and disadvantages of internal audit outsourcing.Then it defines the concept of audit independence and analyzes the impact of audit independence.The third part is the analysis of the status quo of internal audit outsourcing and the research hypothesis.It analyzes the status quo of internal and external audit outsourcing at home and abroad and analyzes the independence of audit committee,accounting firm 's audit years,the scale of accounting firm,the proportion of costs and market competition.The fourth part is the empirical analysis of the impact of internal audit outsourcing on the independence of auditing.The paper chooses a sample of 2012-2015 A-share listed companies to establish internal audit outsourcing,The empirical results show that the independence of audit committee,the scale of accounting firm have significant positive correlation,with audit independence,the proportion of outsourcing costs is significantly negatively related to the audit independence,accounting firm 's audit years and the market competition on audit independence is not significant.Finally,the conclusions of this paper are drawn and policy recommendations and shortcomings are put forward.