Study On The Issues Of Outsourcing The Internal Audit Function

Internal audit appears as the fiduciary duty appear, whose function is to enhance the economy, efficiency, effect of the management work by doing the whole enterprise's management system perfect. The development of economic and the complex diversification of the enterprise's businesses make the function of internal audit in the enterprise is more important. Following the fast development of economical globalization, enterprise's organization behavior is under the serious impact increasingly, some of the developed countries' enterprises gradually outsourcing some non- core businesses or the non- specialty area for reforming organization and altering process. Under this background, Outsourcing the internal audit function has come into vogue little by little since the end of the eighties of the 20th century.After entering WTO, our country is further incorporate to the world economic big stage, and the competition of the market is more and more impetuously. Because the business management level attach more and more importance to the validity of the internal management process and the enhancement of the risk management level, enterprise attach more and more importance to internal audit. But internal audit start a little late in our country, which has not formed perfect internal audit system, many high-quality internal audit personnel, and it cannot follow the development of enterprise. Outsourcing the internal audit not only- can utilize the outsourcing organization specialized knowledge and the rich experience for the enterprise, but also can save the cost, enhance the enterprise's management benefit. Outsourcing the internal audit is the result of enterprise's rationality choice. Looking outsourcing of internal audit correctly will contribute to maximum of internal audit functions.On the basis of reorientation of internal audit, this article analyzes the economic base and feasibility of outsourcing the internal audit from agent theory, transaction cost theory and organization theory respectively. It discusses the reasons and condition that outsourcing the internal audit appears, business and representation form, principle and standard, potential risk and its concrete control measure during the outsourcing process. We know from analysis that both sides must carry on rationalponder during the process of outsourcing the internal audit, in order to make both sides can gain win-win in this process. At the same time, although outsourcing the internal audit has brought many advantages to enterprises, it also brought many risks and disadvantages;we must rational regard this problem, more attention should be paid. Finally according to the existence question in our country internal audit, the article proposed the feasibility of our country carries on outsourcing the internal audit;and it makes prospect of the development to our country's outsourcing the internal audit, proposing the development direction and the suggestion also.