Research Of Internal Auditing Reporting Relationships

In the end of 2002, Cynthia Cooper, the Vice president of IA Dept. of WorldCom, unclosed the astonishing fraudulent practices of WorldCom. The case brought the renovation for corporate governance through out of the world and made IA attaching importance to people than ever before. In this article, IA Reporting Relationships was selected as study subject with two sense of meaning. Firstly, IA Reporting Relationship is one of the several subjects which affect the IA facts greatly. (IIA, 2003) Secondly, as one of the four basic principal parts for corporate governance, IA Reporting Relationships will effect to the results of the internal and external governance. The article analyzed the IA Reporting Relationships under the circumstance of corporate governance and the function of I A in company management, and got the conclusion that the best Reporting Relationships for Internal Auditing is reporting to auditing committee as well as to senior management.There are five Chapters in this paper.Chapter One: Introduction. In this chapter the writer introduced the studying background, outline of the article and study methods, The innovation and the insufficiency of this paper.Chapter Two: From the history of Reporting Relationships to explain the meaning of IA Reporting Relationships. We can learn that the IA Reporting Relationships is closely linked with corporate governance and company management's orientation after reviewing the history.Chapter Three: IA Reporting Relationships under corporate governance. Declared the theoretical background for the forming and growing of corporate governance and IA Reporting Relationships. Meanwhile, analyzed the effects which IA Reporting Relationships affects in corporate governance and discussed its influence for independence which can prepare theoretically for the selection of IA Reporting Relationships.Chapter Four: Serving for two masters. In this chapter the writer analyzed the two most important masters, senior management and auditing committee in IA Reporting Relationships. Combined with the analysis of Chapter Two, the writer think the better reporting relationships is to report to senior management and auditing committee for IA. Moreover, described the conflicts and harmony when I A is serving for the two masters. Chapter Five: IA Report Relationships in China. Connecting with the current status for Chinese corporate governance, the writer offered the suggestion for consummating the Chinese IA Reporting Relationships in the future.In this paper, the writer analyzed the IA Reporting Relationships by literature studying and normal analysis and combining other scholar's research and positive studying conclusion. The innovation of this paper is discussed the IA Reporting Relationships in another depth based on corporate governance's theory and standard of IIA. What's more, with the other scholar's research results which are supporting the rationality for the dual relationships of IA Reporting, it could do a great favor for IA practices. However, the study method of normal research is the insufficiency.