The Influence Of The Internal Audit Characteristics To The Quality Of Internal Control Information Disclosure

Several famous financial fraud scandals that happened in large companies at theturn of the century makes investors aware of the importance of the internal controlinformation disclosure. In order to help investors predict the growth of the companyeffectively by evaluating its business performance, they have to use the informationthat companies disclosed to determine the internal control system’s rationality ofdesign and the effectiveness of execution. The change of external environment makesorganization management mode inapplicable, so managers started to pay moreattention to the effect of internal audit in corporate governance. This is also the reasonwhy internal audit gradually entered the view of the masses, and become the focus ofattention these days.As part of the audit supervision system, internal audit plays an important role inthe internal control and corporate government. It helps to improve the effectiveness ofthe internal control and provide constructive suggestions for perfecting the internalcontrol system by evaluate and supervise the implementation of internal control.What’s more, it is also useful in the perfection of corporate governance structure. Inthis background, in order to improve the level of enterprise’s internal controlinformation disclosure, even the corporate governance’s level by improving theinternal audit level, this paper will study the influence of the internal audit in internalcontrol information disclosure.Through the research, this paper founds that:(1)the internal audit independence ispositively related to the quality of internal control information disclosure, it meansthat the independence of internal audit assures the internal control’s efficiency andeffectiveness, it also improves the internal control’s information disclosurequality;(2)the area of responsibility in the internal audit is positively related to thequality of internal control information disclosure, it means that the larger area of the responsibilities in internal audit, the higher quality of internal controldisclosure;(3)the internal auditor’s professional competence and quality is positivelyrelated to internal control information disclosure, it means that the audit person whohave professional competence of internal audit will improve the quality of internalaudit, which is also helpful to the internal control’s information disclosure quality.Based on the conclusions the paper found out, several advises are proposed:(1) inorder to ensure the independence of the internal audit and improve the efficiency andeffects of audit work, enterprises should set it up under the audit committee, so it willensure the work down smoothly by independent from other departments.(2) as theinternal audit will be participated in management, control, service and management ineach company with the development of economy, the system of listed company’sinternal audit should be gradually improved in our country, only in that way canexpand the scope of its functions, and make it useful in the enterprise.(3)in order topromote quality of internal audit, even the quality of internal control disclosure ofinformation, he enterprise should attaches great importance to the internal auditpersonnel’s professional quality, and the professional knowledge and ability of theinternal audit also should be improved.