The Influence Of The Internal Auditcharacteristics To The Internal Control Quality

As one of the four basic parts of corporate governance,through the implementation of the two functions of authentication and consultation,the internal auditing assists the organizations in maintaining effective control,in evaluating the effectiveness and efficiency of control,in promoting improvement of control continuously,so as to achieve value increment,as well as to help the operation of organization to step on a new level.As a kind of mechanism,internal control not only can provide reasonable assurance for the reliability of financial report,achieve internal control objectives,but also to ensure the efficiency of operation activities.Therefore,in recent years,the studies of internal control of the heat are merely increased,especially after the outbreak of a series of fraud cases represented by Enron Incident.This paper constructs the indicators of internal audit characteristics on the basis of literature review and theoretical analysis,and selects the data of A listed companies in Shenzhen Stock Exchange from 2012 to 2015,makes an in-depth empirical analysis of the relationship between the characteristics of internal audit and internal control qualityFirst of all,based on agent theory,corporate governance,risk management and related theories of internal control.the starting point of the article is The relationships between the internal audit and internal control quality,analyses the relationship between corporate internal audit and internal control,puts forward the research hypothesis.Secondly,combined with the literature review and theoretical analysis,the characteristics of the internal audit organizations of the listed company are constructed from two aspects: the characteristics of the CAE and the size of the internal audit organizations.Finally,through the 2012 to 2015 data from the Shenzhen Stock Exchange listed company,internal audit related characteristics were analyzed by descriptive analysis,the characteristics of internal audit and internal control index index model for regression analysis.The research result shows that:(1)There is a significant positive correlation between the independence of internal audit and the internal control quality,which confirms the hypothesis in the paper;(2)The internal audit scale and the internal control quality are positively correlated,as well as with internal control quality improvement.(3)It shows the positive correlation between the professional competence of auditor and internal control quality,also shows the positive correlation with internal control quality improvement.(4)In addition,research result indicates that the internal control quality and internal audit report have a significant positive correlation.This study conclusion provides empirical evidence for the study of the relationship between the quality of internal control and internal audit of listed companies,guide the listed companies to improve the internal audit organization structure and operation mode;also for the relevant departments to promote and improve the internal audit standards,provides a useful reference to strengthen corporate governance,so the development of modern corporate governance in an important practical significance.