Research On Internal Audit Externalization Of Listed Companies

For the past few years,with the rapid development of China's economy and the continuous improvement of the modern enterprise system,internal audit has become more and more important in China's listed companies.Consequently,for the sake of maintain the competitive advantage of enterprises and improve the efficiency and effect of internal audit,some listed companies begin to actively try to outsource the internal audit business to external audit institutions in whole or in part by means of internal audit externalization.In this context,the Chinese association of internal audit issued the "no.2309 specific internal audit standard--internal audit outsourcing management" in 2019,mainly to standardize the outsourcing management behavior of internal audit business and ensure the quality of internal audit.However,the practice of internal audit externalization in listed companies in China is still in the exploration stage,and many listed companies have not really defined the connotation of internal audit externalization,don't know how to implement internal audit externalization in the company.This paper aims to promote the application and development of internal audit externalization in listed companies by studying its connotation,mode,advantages and disadvantages,so as to improve the core competitiveness of enterprises and improve their governance structure.Based on the motivation and influence factors of the internal audit externalized as the breakthrough point,combed the domestic and foreign about the advantages and disadvantages of externalizing internal audit,internal audit,internal audit to externalize the motivation and influence factors of related literature,expounds the meaning of the internal audit externalized,patterns,and the advantages and disadvantages,and using the principal-agent theory,transaction cost theory and core competence theory as the full text research support.At the same time,by analyzing the motivation and influencing factors of the implementation of internal audit externalization by listed companies,as well as the status quo,problems and causes of the implementation of internal audit externalization by listed companies,a system for the application of internal audit externalization by listed companies is constructed.In addition,this paper adopts the method of case study,combining with the case of HZ company,focuses on the process and effect of implementing internal audit externalization,analyzes and obtains the enlightenment of the case.Finally,this paper puts forward some strategies for the internal audit externalization of listed companies in China,including strengthening risk control,improving management system and strengthening external supervision.