The Research On Internal Audit Outsourcing

More and more enterprises have realized that they can not sustain top-ranking in every aspects of their business in such an intensified competitive market, and to keep their running in a high level would also be costly and unbearable. Employing professional from outside to offer internal audit service has now been a tendency. This paper based on redetermining the concept of internal audit introduces the practice of internal audit outsourcing in foreign country and analyses its economic principle according to agency theory and transaction costs theory, which comes to the conclusion that it is necessary to raise the standard of internal audit when accountability develops from financial bases to management bases. At the same time, the enterprise should consider the channel from which to seek this managerial function. In the last part of paper, the author indicates the meaning and possibility of internal audit outsourcing in China, and makes some explorative research on the risk control of its operation as well as its form and content.