Study On The Problem Of Internal Audit Outsourcing

Internal audit as an important organization of enterprise supervision andself-discipline, is an important factor to optimize the management and decision-makingof the modern enterprise, it also can improve the effectiveness and efficiency ofenterprise economic activity, and enhance the competitiveness of the modern enterprise.However, in an increasingly competitive market environment, enterprise to get betterdevelopment in our country, it is necessary to change ideas, new understanding ofinternal audit. Because of management pay more and more attention to the effectivenessof the enterprise internal management, and improve awareness of risk management, sothe corporate internal audit is more and more attention. Internal audit in our country,however, has not been effective development, the independence of the internal audit didnot deserve security and audit personnel professional low efficiency, make enterprisedevelopment in our country has received the certain limit, therefore, the development ofinternal audit in China should be in the direction of improving the efficiency of auditquality and audit, figure out a way to more conducive to the development of our countryenterprise internal audit, conform to the enterprise internal audit outsourcing in China.Internal audit outsourcing was first proposed by the world-renowned accountingfirm (Arthur Anderson, KPMG, Ernst&Young, etc.), and internal audit outsourcing,also referred to as the internal audit outsourcing internal audit exteriorization, is theenterprise internal audit work in whole or part by public accounting firm of certifiedpublic accountants and other professionals to complete. Internal audit in the1960s hasbeen the focus of concern has been to many western companies will own some internalaudit outsourcing to accounting firm to undertake, especially the enterprise involvingsome of the non-core business to external auditors to complete the audit work, theythink it can not only reduce the cost of enterprise, also can improve the quality of audit.In a survey of fortune500companies, many companies will be outsourced internal auditcertified public accountants, there are external personnel to complete the enterpriseinternal audit work, and they think this can reduce costs, improve efficiency. Since the1990s, internal audit outsourcing has become a more common phenomenon, and thenthere are quite a number of enterprises or institutions to part or all of its internal auditoutsourcing to external audit institutions. According to related statistics, the degree ofinternal audit outsourcing in the United States and Canada Enterprises respectively in1996to21.5%and31.5%rise to the200538%and34.8%(surveyed enterprisesdistributed in various industries). According to Kusel in1997,21%and31%ofcompanies have chosen to outsource part or all of the outsourced internal audit engagements in the United States and Canada, respectively, at the same time in theabsence of choosing outsourcing services in the enterprise has a third of the enterprisesintend to internal audit outsourcing.At present, the research on the issue of internal audit outsourcing in China, still inthe preliminary exploration stage, the understanding of internal audit is only a smallnumber of scholars have reached a deeper level. In internal audit outsourcing researchdirection, therefore, theory and practice study is less, not formed a complete set oftheoretical basis about internal audit outsourcing, application technology and evaluationstandard, etc. A set of complete theoretical system, the practical experience is the lack ofinternal audit outsourcing theory researches and practices are far behind the westerndeveloped countries.This paper main body is divided into five parts: the first part mainly reviews theresearch status quo of internal audit outsourcing, as the research background of thisarticle; The second part mainly expounds the theory of outsourcing internal audit,internal audit and external audit, introduces several forms of the internal auditoutsourcing, and discusses the theoretical basis of the internal audit outsourcing, as toprovide theoretical basis for later in this article the research; the third part expounds theproblems existing in the outsourcing of internal audit in China, mainly for the relevantsystem is not sound, not conducive to the cultivation of the enterprise managementpersonnel, as well as the follow-up control of the internal audit outsourcing is notperfect, at the same time, make an analysis of the causes of these problems one by one;the fourth part is mainly to introduce the experience in internal audit outsourcing,through the analysis of the experience of the enlightenment of perfecting our country’sinternal audit outsourcing; the fifth part in view of the existing problems of internalaudit outsourcing in China, put forward the corresponding measures, so as to perfect thesystem of internal audit outsourcing in our country.Companies seek to internal audit outsourcing, are not to replace the internal auditby external audit, but the use of internal and external audit resources to better enforcecorporate internal audit work to achieve the effective integration of resources. Therefore,combined with the specific situation of the enterprise internal, use outsourcing resources,appropriate use of internal audit outsourcing, can better play the function of internalaudit, to perfect the internal audit as the role of self-discipline and supervision, andimprove the comprehensive competitiveness of enterprise.