The Research On Decision Of Internal Audit Outsourcing Business

With the advancement of economic development and information technology, competition among enterprises becomes increasingly fierce. More and more companies choose to outsource non-core business to professional service agencies. Because internal audit outsourcing brings many advantages a lot of enterprise internal audit department choose to outsource part of the internal audit.Internal audit outsourcing, however, is not always successful. The outsourcing decision-making error is the most critical reason to cause the failure of outsourcing. Therefore, to build scientific and reasonable internal audit outsourcing decision-making model plays a vital role in improving the level of decision-making and reducing the decision-making. At present, China academic research on internal audit outsourcing decisions are rare, and most of them are not able to establish a science outsourcing decision model. In such cases, the author on the basis of combing related research presented five factors and11specific indicators affecting internal audit outsourcing decisions, also found that there is a hierarchical relationship between these factors and indicators. Based on this, we introduce the analytic hierarchy process, fuzzy comprehensive evaluation and risk matrix method to construct a two-step decision-making model of internal audit outsourcing business. Firstly we use the analytic hierarchy---fuzzy comprehensive evaluation model to determine whether a business is worth outsourcing, secondly we use the risk analysis model to quantify the risk of the outsourcing business, and ultimately we help decision-makers to make a reasonable choice. Finally A detailed description of the company as an example application of the decision-making model.