Research On Professional Ethics Of Internal Auditors In Listed Companies In China

Internal auditing in listed companies has become increasingly significant.However,its results turn out to be unsatisfying.Internal auditors often conceal findings of audits and some of them are professionally incompetent.This situation reveals that professional ethics which is used to guide internal auditing practices is lacking and failing to play its due role.It is precisely because internal auditors lack professional ethics that some listed companies resort to external professional auditors to conduct internal audits,but in turn this practice has aggravated ethics problems among internal auditors in listed companies.Therefore,in order to enhance the effectiveness of internal auditing in listed companies,it is essential to improve professional ethics of internal auditors in listed companies.Based on the requirements for internal auditors' professional ethics from the Audit Commission on Internal Auditing and the Internal Auditing Standards No.1201-Professional Ethics of Internal Auditors,this paper have started to collect information and samples since 2013 and at the end of 2017,it randomly selected total 250 listed companies from 25 industries for sampling.(The 2017 Spring Financial Security Evaluation Report of China's Non-financial Listed Companies provides for the industry classification.)After selecting samples,according to the requirements,the professional ethics problems existing among internal auditors are classified and examined,and the causes of those problems are identified and summarized.Hence,solutions to solve the professional ethics problems of the internal auditors in listed companies are put forward from the theoretical and practical aspects.In addition to the introduction,this paper divides the main content into four parts: The first part initially analyzes how an internal-auditing department is established in a listed company,and what kinds of professional morals and norms the department should construct.Also,it systematically explains the concept of internal auditing,how it functions,establishes and implements in listed companies.The second part presents and analyzes the status quo of the professional ethics of internal auditors in listed companies.Based on the previous research,the third part,combining macroscopic investigations and micro-analysis approaches,analyzes reasons why internal auditors have professional ethics problems.The third part analysis is carried out from the national policy norms level,social macro level,listed companies' level and individuals' level separately.The fourth part proposes corresponding solutions and measures based on the above analysis.