A Study On The Operation Of Internal Audit In Corporate Accountability System

Since Li Jinhua, former director of State Auditing Administration, launched the "audit storm", all walks of life pay attention to the "audit accountability", audit becomes a new method of administrative accountability. Recently, Xi Jinping, general secretary, puts forward "lock power into the cage of system","eight regulations" and other anti-corruption political opinion, promoting "accountability system" to be established, giving birth to the needs of the "audit accountability". Similar with government departments, corporations have internal accountability requirements. Based on principal-agent theory and fiduciary duty theory, the accountability of the management and operating layer exist. Internal audit should provide the accountability information to shareholders and management in time, keeping the corporation healthy and orderly development.Firstly, started with accountability and internal audit from the relevant literature, agency and fiduciary duty theory, this paper discusses the accountability and accountability system’ s implications, analyses the feasibility, necessity and the status quo of the introduction of accountability system into corporate, puts up that the construction of corporate accountability system is not yet mature.Secondly, the article focuses on the audit requirements, reporting forms, business types, internal audit authority, these factors were found to depend on the needs, object, content and permission assignment of corporate accountability. At the same time, we summarizes the differences conclusions between state-owned enterprises and private enterprises, such as more needs for accountability, higher level of accountability, but the level of financial accountability and responsibility for economic development situation are almost the same by collecting information.Finally, the paper studies the operation of the internal audit in corporate accountability system through corporate responsibility audit evaluation index system (internal audit information content) construction and department linkage mechanism (internal audit information channels) construction. We first combine Internal Practice of Internal Auditing Standards No.5, guiding corporate responsibility into financial, managerial, social, moral four responsibility dimensions, each dimension consists of quantitative and qualitative indicators, internal audit assigns different weights to indicators according to different companies, measuring fulfillment of the object; also combine the internal audit department and the punishment system of human resources, accelerating the speed of the "difference information" passing among the departments, helping departments avoid various risks, while making incentive evidence; Finally we rate five recommendations to enhance utilization and conversion of internal audit results:(1) organize staff training, convert internal concepts;(2) improve audit quality, ensure information is valid;(3) build linkage mechanism to speed up information transfer;(4) collate cases into a book, promote in departments;(5) integrate internal audit results into the evaluation.This article analyzes internal audit basic concepts and roles from the perspective of corporate accountability system, trying to use the operation mode of internal audit in corporate accountability system to enhance the utilization and efficiency of the internal audit results for current status of the internal audit results not being taken seriously, hoping to provide some new ideas and methods for internal audit theorists and practitioners.