Research On Organizational Strategy And Internal Audit Model Matching: Built-in Or Outsourced

Because of Arthur Andersen firm who in charge of Enron's internal audit works exists serious dereliction of duty,regulatory authorities ask for a lot to the enterprise internal audit which include to require listed companies to set up the internal audit activity.But due to the build of internal audit department in the short term costs outweigh the benefits,many companies choose to outsource of internal audit.In the long run,outsourcing has a clear natural disadvantage,which is the company have to be responsible for the external mechanism of moral hazard.What should be how to choose the strategy of internal audit,this article attempts through strategic situations in different groups to compare the internal audit mode selections,and explore the connection between organizational strategy and internal audit mode selection,the logical path between the scope of application of relatively common conclusion expectations.For such reasons,this paper chose two telecommunications industry leading enterprises,adopt the method of literature review and case study,find the strategic relationship between internal audit mode selection and its own characteristics,finally get to the conclusion.Result is that in the steady strategy of enterprises,they are more inclined to choose all the built-in,and for transcendental strategic outsourcing enterprises,they are more suitable for choice of cooperation mode.