A Research On The Flexibility Of Internal Auditing System

The turbulence and uncertainty of the environment has a far-reaching effect on firm's management. Facing the fierce competition, administrators suggest strategic conversion and adjustment as well as risks' supervision all that need related subject to supply timely, related and reliable information. Under such background, the firm's internal auditing department is considered to be the best function system to help management and deal with risks, and it also supervises and estimates strategic management and decision-making action. In order to develop the function of internal auditing of increasing value and improving firm's operation, the firm's internal auditing department requires improving significantly the ability to adapt auditing environment's variety, desiderates constructing flexible internal auditing system.This paper explaines internal auditing system and its flexibility based on the theories of flexibility, system, internal auditing behavior and contingency. By analyzing the host-guest environment of internal auditing system flexibility, this paper advances the concept of internal auditing system flexibility motivation, and constructs measurement model of internal auditing system flexibility motivation in order to solve"which power impels the formation and operation of firm's internal auditing system flexibility","how to impel"and"how far it can impel", then reveals the formation mechanism and operation mechanism of internal auditing system flexibility. The paper establishes measurement model of internal auditing system flexibility, and designs the best constitution diagram of flexibility. Finally, the paper suggests some tactics to improve firm's internal auditing system flexibility including consummating corporate governance, promoting the coupling of internal auditing resource and ability, strengthening internal auditing appraisement mechanism, innovating internal auditing mode, foster auditing culture based on flexibility.