Research On The Influencing Factors Of Internal Audit Quality Based On The Hofstede's Cultural Dimension Theory

As an important component of modern corporate governance,internal audit can help companies strengthen internal management,prevent operational risks,and increase economic efficiency by supervising corporate operations and management activities.Some scholars have found through research that the quality of internal audit can also affect the cost of corporate external audit.Currently recognized factors that affect the quality of internal audit are the size of the internal audit department,the professional competence of internal auditors,and the corporate governance structure.It is generally believed that the larger the internal audit department is,the stronger the professional competence of the internal audit staff is,and the higher the internal audit quality is.However,most scholars ignore the cultural background of employees and the impact of values on the quality of internal audit.Culture,as a concentrated embodiment of employee group awareness,values,and behavior,plays a role that cannot be ignored in the organization and management activities of a company.The internal management environment of different internal auditors is different,which makes the internal auditors' own cultural background and values have different effects on the efficiency and quality of internal audit work.Hofstede's cultural dimension theory plays a great role in the research of crosscultural management.Hofstede divides the employees' culture and values into five dimensions and provides a way to quantify employee values.This article takes culture as the starting point and introduces the Hofstede's cultural dimension theory into the measurement of employees' own culture and values to explore the impact of culture on the quality of internal audit.First of all,we use the Hofstede's cultural dimension theory to quantify the values of internal employees,and investigate the situation of 160 internal auditors through questionnaires,including the internal dimensions of auditors' culture and internal audit related conditions;then through multiple regressions.Methods to study the influence of the three cultural dimensions of power distance,uncertainty avoidance,and individualism on the quality of internal audit.Finally,the smaller the power distance,the more obvious the uncertainty avoidance preference,and the higher the internal audit quality.Then,further case studies were carried out on the two companies involved in the investigation and research.From the perspective of the Hofstede's cultural dimension theory,the company's management model and the construction of internal audit related systems were used to analyze the positions of these internal auditors.How the corporate environment interacts with the employee's own values and influences the behavior of the internal audit department personnel,and then the conclusion is drawn that the cultural dimension of the internal audit employees affects the quality of the internal audit: the cultural dimensions of different internal audit employees influence the quality of internal audit.At the time,it will also be influenced by the company's management system and the corporate environment.Finally,from the following three aspects: power distance,uncertainty avoidance,and individualism,three cultural dimensions,suggestions are made on how to improve the quality of internal audit: through the recruitment power distance index is small,the uncertainty avoidance index is high and The internal audit employees whose corporate values are matched,combined with proper decentralized management models,allow internal audit employees to participate in the management of the company.Finally,a comprehensive internal audit related system,work guidelines,and employee compensation system are established.