Influence Of Independent Directors On Internal Audit Quality Of Listed Companies

In modern corporate governance system,independent director system and internal audit system are important means of supervision.Existing research shown that the internal audit institutions' own attributes and corporate governance structure are the two main factors that influence the quality of internal audit.From the internal audit organization's own attributes,the key lies in its membership mode and personnel composition.Currently,in the four management modes of internal audit institutions,the board of directors has the best effect and the highest recognition.The board of directors leads the internal audit through its audit committee.The company law has clearly defined the proportion,responsibility and professionalism of the independent directors in the audit committee.It can be seen that independent directors play an important role in internal audit through the audit committee.Existing researches on the influence of corporate governance structure on internal audit quality mainly analyzed from factors such as ownership balance,management shareholding,independent directors' proportion,and executive financial background,etc.But there are fewer studies focusing on one point.This paper argues that supervision is the common responsibility between independent directors and internal audit,and it is a trend for independent directors to lead the internal audit work through audit committee.So the impact of independent directors on internal audit is an interesting subject.This paper studies the influence of independent directors on the internal audit quality of listed companies from the perspective of the professional background and performance behavior.Firstly,this paper analyzed the professional background and performance behavior of the independent directors.Then,expounded the emphases of the roles of independent directors in different backgrounds.At last,five hypotheses were put forward.The empirical results show that the independent directors of financial background did not promote the internal audit as expected.Independent directors of legal background can improve the quality of internal audit.The site consistency of the independent director and the listed company is positively correlated with the internal audit quality;The number of absences of independent directors is negatively correlated with the quality of internal audit.The dissenting opinions of independent directors are negatively correlated with the quality of internal audit.Based on literature review,theoretical elaboration and empirical conclusion,this paper puts forward policy suggestions on improving the independent director system and improving the quality of internal audit.