Economic Analysis Of Internal Audit Add Value

The twenty-first century, as economic development accelerates, business increase in risk, corporate internal audit growing demand, the internal audit in its daily management of an increasingly important role. In particular, in 2001, the IIA (the Institute of Internal Auditors referred to as IIA) on the re-definition of internal audit, internal audit first proposed the new goal:to add value. This marks the development of internal audit into a new period.In this paper, results of previous studies based on the use of economics, management theory and related knowledge, normative analysis of the internal audit "add value " targets a systematic study.First, the definition of internal audit, the scope of the increase in the value of change, combined with production based on internal audit responsibilities entrusted to the economic theory, principal agent theory, transaction cost theory and contract theory as well as the cost of the development of internal audit and external factors on internal audit meaning of" add value" goals are analyzed.Secondly, from the perspective of commodity value, the internal audit as a special commodity, the use of demand and supply theory of the value inherent in the internal audit; the use of cost control and the threat of spillover effects of the value and increase the value of internal audit within endogenous factors; the use of cost-benefit analysis of the costs and benefits of internal audit., explain the benefits outweighed the cost of internal audit, to achieve the increase in value. Meanwhile, the combinations of the increased value of the internal audit findings, internal audit add value to export Realization.Finally, the combination of current add value of Internal Audit with regard to major issues, ranging from changes in audit concepts, establish internal audit, increase the competence of internal audit, change auditing, and the audit team to strengthen the construction of the concrete measures put forward.