The Research On Value Added Internal Auditing Based On Corporate Governance

Internal auditing has developed rapidly with the growth of economy. Beeause the traditional interal audit only served in the management level, The function, content and audit range have been limited. Along with the unceasingly Strengthens on corporate governance, the goal of internal auditing and corporate governance have gradually become same, that is to add value to the organization. And the function, content and audit range also changed with the change ofg oal. The value-added intenal auditing has been born.From overseas experience, the internal audit has a very important position in improving the governance structure and internal control, In the information-gathering process, there are many article on internal audit in China,but empirical studies of the internal audit system are not many, many only stay in the introduction of the definition, while there is no specific analysis of listed companies demand on the proliferative carry out a branch of the audit. This may be due to China's current internal audit work and the large difference between the developed countries, it is hard to promote ideas such audits. However, as China's accession to WTO, more and more intense competition, companies face the risk of constantly increasing, has become an important factor bearing on its fate. China's enterprises, especially listed companies in a larger scope and deeper level of participation in international economic cooperation and competition. Risk management has become the focus of corporate governance, corporate governance paradigm shift from static control to constantly guard against the risks of dynamic model. Therefore, the strengthening of China's listed companies, internal audit theory, research, promotion of the development of internal audit, strengthening the internal audit of listed companies to fully and effectively play the role of internal audit, so that to prevent risks, improve corporate governance, and thus add value to the organization is a priority In an important task before us has important practical significance. Based on this background and significance, the paper listed companies, value-added internal audit studied.ChapterⅠis the introduction article. This article first introduces the research background, topics of significance, and then undertook a review of relevant literature and conducted opinion commentary. Literature review from foreign and domestic point of view of the three levels of study, namely, the meaning of value-added internal audit, value-added internal audit and company add value, and value-added internal audit and corporate governance of the relationship between these three dimensions.ChapterⅡis the basis of value-added internal audit-related theoretical analysis. A brief overview of value-added internal audit traceability, describes the relevant theoretical basis, and describes the value-added internal audit with the traditional internal audit relationships. In 1997, IIA set up a guide to the core working group to study a new framework for internal auditing standards. In 1999, was submitted to the IIA Board a new framework for internal audit professional standards, thus, production of value-added internal audit has legitimate arguments. Value-added internal audit is not a new type of an audit, which is the internal audit development of a new stage. Is the previous financial audit, management audit of the business succession and expansion.ChapterⅢis a perspective of corporate governance of listed companies in China under the value-added internal audit of dialysis, introduced the value-added internal audit and corporate governance in relations and in corporate governance of listed companies in China value-added features and status of internal audit. Internal audit is part of corporate governance, while on the corporate governance process evaluation of the effectiveness and improvement. Positive interaction between the two will help improve governance processes and organizational values increase.Chapter IV is the empirical part, the first of the previous empirical studies were reviewed synthesis, and on this basis, from the performance indicators, asset utilization and other indicators put forward with the assumption that the relationship between internal audit, and then again on the dependent variable, Since the variables, and control variables are defined. In 2004 as a research window to the A shares in Shanghai stock market all the company's annual report the information for the sample of internal audit was conducted descriptive statistics, correlation analysis and make a regression. On this basis, empirical studies come to conclusions.Chapter V of value-added measure of internal audit, first introduced the value-added internal audit to achieve value-added performance evaluation, combining quantitative and qualitative evaluation, external evaluation, internal evaluation and self-evaluation-line combination, and then introduced based on the Balanced Scorecard The internal audit performance evaluation index system and GAIN-based performance evaluation index system. GAIN provides performance evaluation index is the extensive research and soliciting opinions formed on the basis, and has a strong practicality. At last, the indicator system in the application of the Balanced Scorecard should pay attention to the problem.Chapter VI is the final chapter, on value-added internal audit and corporate governance work more effectively put forward some countermeasures and suggestions. From the external environment and internal factors, two aspects are discussed. House will have to establish an effective risk early warning system and an effective audit techniques to improve the ways and means to improve the quality of the audit, so that proliferative role of internal audit to be brought into full play.In the article writing process, I strive to contribute in the following areas:1, China's scholars study of value-added most of the internal audit is mainly between the proliferation of type of internal audit and audit of the value-added content and ways of normative research in the wording of this value-added process of the internal audit into the corporate governance Perspective of research, attention to the combination of theory and practice.2, as mentioned above, the current value-added of China's scholars study the internal audit is a normative, value-added internal audit on empirical research, to retrieve the domestic literature is still relatively small, the author in previous studies based on the an empirical model for research.3, finally, looking at how to measure the performance of internal audit departments when combined with various aspects of information, classified on the basis of the classic indicators of the analysis, design of an internal audit department of the Balanced Scorecard model. As the author's ability and level of one's limitations, There are still deficiencies in the following article:1, empirical part of the target design, this article is already on the value-added internal audit on the basis of empirical research, the author through a comprehensive comparison and adds some new indicators form, but because of the existing empirical research is limited, so the selection of indicators may be based on the lack of appropriate literature。2, with regard to the selection of sample data, this paper choose the year 2004 data, and therefore the stability of the empirical results need to be further verified.3, the scope of the selection of sample size, the paper chose the Shanghai-listed company, not all of the listed companies, which may have some of the results of empirical implications.