The Impact Of Value-added Internal Audit On Business Performance

The purpose of this paper is to explore the influence mechanism and influence size of value-added internal audit on the performance of middle and small-sized enterprises in China.Therefore,this paper analyzes the impact of value-added internal audit on the performance of middle and small-sized enterprises in China from the three dimensions of mechanism analysis and empirical study.The theoretical analysis of this paper finds that value-added internal audit can improve enterprise performance through three main mechanisms.Firstly,value-added internal audit can improve corporate governance,strengthen internal control,strengthen risk management,so as to improve the profitability of enterprises.Secondly,value-added internal audit can improve the innovative ability of enterprises.Thirdly,the value-added internal audit can reduce the probability that a company will be punished,win the good reputation for the enterprise,and can broaden the financing channels of enterprises,so as to promote the better development of enterprises.In the part of empirical research section,this paper examines the three mechanisms of-value added internal audit affecting firm performance.The 2015 annual report of the audit committee released 191 of the number of small board and GEM enterprises as the research object,by using the STATA12.0 software,an integrated use of ordinary least squares method and Logit regression method,draws the following conclusion.First,the value-added internal audit can enhance the profitability of enterprises,and help to improve the asset yield of enterprises.Second,value-added internal audit can improve the innovation ability of enterprises,and make enterprises devote more R&D personnel and R&D expenditure.Third,value-added internal audit can reduce the probability of illegal enterprises,reduce the number of enterprises,reduce the degree of illegal enterprises,to help enterprises to win a good reputation,and will be more financial resources to focus on business development.Based on the theoretical and empirical research,this paper puts forward suggestions to improve the value-added internal audit of middle and small-sized enterlprises.First,establish an effective internal audit mode,fundamentally ensure the authority and independence of internal audit.Second,expand the functions of internal audit,internal audit methods,enhance the value of internal audit,so as to realize the added value to the organization and improve the organization's operating conditions and other important goals.Third,optimize the personnel structure of audit committee,and improve the professional quality of auditors.