Research On The Influence Of The Internal Audit Quality On Enterprise Performance

To increase the value of enterprises is not only the function of internal audit,but also the new requirements of the social public to the internal audit and the improvement of enterprise performance is the most basic embodiment of enterprise value.IIA proposed the definition of value added internal audit in 1999,and emphasized that internal audit has the function of adding value to the organization.International organizations,the Chinese Internal Audit Association and the National Audit Office have also introduced policies to ensure that internal audit can increase the value of organization.Domestic and foreign internal audit organizations improve the quality of business,expand the scope of the audit business,increase the volume of business and do other aspects of positive attempts and efforts.Whether internal audit can bring value to the organization and how to increase the value,still need to be further tested by theory and practice.This paper adopts the research methods of combining normative research and empirical research,based on a review of the existing research results,using the accountability theory,value chain theory and cost-benefit theory analysis of the impact of the of internal audit quality on corporate performance;With 2011-2015 Shenzhen A shares listed company as the research object,this paper selectes six indexes from the two aspects of the internal audit process and results to construct the internal audit quality index,and with Return on net assets and Tobin's Q value to measure enterprise financcial performance and enterprise market performance respectively,establishes regression model to test that the effect of internal audit quality on firm performance.The results of empirical test show that the internal audit quality index has a significant positive correlation with Return on net assets and Tobin Q,and the improvement of the internal audit quality is helpful to the growth of corporate financial performance and market performance;That is to say,the high quality of the internal audit can bring value to the enterprise.In view of this,this paper puts forward policy recommendations from two aspects: strengthening the management of top management attention and improving the quality of internal audit in order to play the role of internal audit in value added more efficiently.When build internal audit quality index,this paper replaces the measure of internal auditsize.The internal audit size is measured by the ratio of internal auditors to the total number of companies,not by the number of internal auditors.And then,the internal audit size is replaced by the ratio of internal auditors to the total number of companies to perform robustness tests.This is the innovation of this paper.