Research On The Influence Of Internal Audit Quality On The Investment Efficiency Of Enterprises

Internal audit is an essential part of modern corporate governance.Through internal audit,we can find the problems in corporate governance,and play a preventive role in internal organizational activities.With the development of social economy,the internal and external environment of an enterprise is becoming more and more complicated.The function of internal audit is continuously extending,from the function of verification to the function of evaluation and service.The scope of audit is gradually expanding,from the former financial audit to the operation audit,management audit,internal control audit and risk assessment audit.Generally speaking,internal audit is of great importance to the internal audit of a company It has the functions of protection,authentication,restriction and construction.At the same time,investment is one of the driving forces to enhance the vitality and promote the development of enterprises.The level of investment efficiency directly affects the level of enterprise cash flow and the quality of earnings,which affect the maximum value of enterprises.In the real environment,due to the influence of macroeconomic situation,inherent defects of enterprises,cognitive biases of decision makers or personal behavior preferences,some enterprises may have inefficient investment behavior to some extent,so that the investment efficiency of enterprises is low.Theoretically,the internal audit function can make up for the lack of supervision and management evaluation of enterprises,improve the authenticity and time lag of information flow between the owners and controllers of enterprises,reflect the effectiveness and progress of incentive measures for managers within the organization,so as to achieve the role of restraining managers' behavior.As the "ears" and "eyes" of enterprises,internal audit can prevent and protect the activities of enterprises by supervising and evaluating the behaviors of internal personnel,system policies and internal control.Generally speaking,high-quality internal audit can directly restrict the inefficient investment behavior of management,reduce the adverse selection and moral hazard caused by information asymmetry,and affect the investment efficiency of enterprises.This paper takes A-share listed companies in 2014-2018 as a research sample to empirically analyze the impact of internal audit quality on investment efficiency.It is found that audit supervision can significantly reduce the degree of inefficient investment.Therefore,it has profound theoretical and practical significance to strengthen the construction of internal audit system and ensure the quality of intemal audit for the value creation of enterprises and the orderly development of capital market.