Study On Value-added Effect Of Internal Audit In Listed Companies In China

Many scholars have concerned the study on value-added features of internal audit after being promulgated the fifth of the definition of internal auditing by the International Institute of Internal Auditors (I I A) since 1999. It has never been a time like this to bring such a huge challenge to internal audit, but also never been a time like this to bring so many opportunities to internal audit. At the late 20th century and the beginning of this, accounting scandal was revealed frequently in every country's corporate in the world, so that the community began to focus on internal governance which is shifted from the company's external governance. Especially the incidence of Enron and the explanation of capital expenditure projects which is got out of line by WorldCom internal audit staffs, affirming the function on value-added for the organization by the regulatory authorities and the public, and the role of internal audit is attached importance unprecedently.In this paper, the point of view is the internal audit value-added effect of listed companies in China, mainly using a combination of method, including standardized research and economics. Research ideas are as follows:First, I point out the importance and urgency of value-added effect of listed companies'internal audit based on background analysis. Secondly, based on the perspective of this paper, I review the theoretical basis of internal audit and argue the relationship between them, and then compare the modern internal audit function to the traditional internal audit based on the changes in the definition of the internal audit. Again, using economics way to demonstrate whether there is value-added effect, while talking about influenced factors on value-added effect of internal audit. Finally, according to the existing problems of internal auditing in practice in listed companies in China, I give the internal audit policy recommendations to improve internal audit operations, enrich and expand the internal audit theory, thus promoting the development of internal audit in China.The innovation of this paper is mainly reflected in the following areas:1. The new derivation wayIt stays in theory for the internal audit of the past, but this paper use methods of economic analysis with empirical data to research value-added effect of internal audit, so the economics model derivation and formulas, escape all reflected innovation in the research methods and means.2. The new study objectThe problem of internal audit value-added to the organization stays in the theoretical at present, especially for literature about the securities listed companies on the Main Board with the realities is few. In this paper, the perspective is internal audit value-added effect of listed companies, I analyze previous experience data in-depth, combining with the existed problems in practice, put forward a series of targeted policy recommendations.