A Feasibility Study On The Externalization Of Enterprise Internal Audit

Since the restore of China’s audit system from the early 1980 s, China’s internal audit experienced the development of breakthrough. As the expanding of connotation and function of internal audit, its role in the organization is increasingly valued, many companies began to pay attention to the construction of internal audit departments and agencies and improve the professional skill requirements of internal auditor. In consideration of the cost effectiveness and the professionalization of audit services,some international companies adopted the way of outsourcing of internal audit. As early as 1988, foreign certified public accountants began to lobby "fortune 100" outsourcing their internal audit services, some companies accepted the advice of certified public accountants, outsourced parts of the internal audit work to the external accounting firm. Due to various reasons, internal audit outsourcing is not very common among enterprises of our country, but there have been many scholars begin to pay close attention to the issue, Chinese scholars’ researches to the problem of internal audit outsourcing mainly focused on the motivation, the advantages and disadvantages, systematical discussion about weather different types of enterprises should adopt outsourcing and what forms of outsourcing should they adopt is rare.First, this paper systematically researched the driving factors of internal auditing externalized, the pros and cons of internal audit externalized, the popularity of internal audit outsourcing and the experience of their success.Then, draw lessons from the existing audit outsourcing model, combined with the characteristics of China’s enterprises, from the enterprise scale, enterprise nature,internal audit and the relationship between governance and management aspects of the research is suitable for China’s enterprises to adopt the way and content of the outsourcing of the internal audit externalized.Finally, the problems existing in the internal audit externalized puts forward constructive measures and decision-making procedures, hope to be able to cause the attention of enterprise itself and the relevant regulatory authorities, so as to put more resources to research and formulate concrete implementation specification externalization of internal audit.