Research On Quality Control Of Internal Audit Outsourcing In Administrative Institutions

On October 27,2014,Opinions of the State Council on Strengthening the Work of Audit was released.In the guiding ideology,it is clearly stated that “So as to realize full supervision coverage of audit and promote modernized governance of the country and sound development of the national economy”,and it is proposed that during the implementation of the audit project,we can explore the purchase of audit services from the society according to the needs of the project and gradually clarify the need for internal audit to be partially outsourced to external audit institutions in administrative institutions.In fact,according to the requirements of relevant documents,administrative institutions should establish internal audit institutions,when the support of third-party audit institutions is required,they can be selectively outsourced as appropriate.In recent years,the internal audit responsibility of administrativeimple institutions has become increasingly serious,and the tasks have become increasingly heavy.The reasons are as follows: First,the increasing quality requirements of internal audit work caused by the change of functions.Second,the quality of internal audit work is closely related to the use of fiscal funds.The internal audit of administrative institutions is outsourced to third-party audit institutions as appropriate,which provides more possibilities for the current difficulties faced by internal audit of administrative institutions.This article selects the topic from the perspective of outsourcing the internal audit business of the J department to an external audit agency.It is based on the theory of principal-agent theory,transaction cost theory,public governance,and quality control theory.We analyze the current status of internal audit,the management of the implementation process,and the implementation effect,and summarize the experience and issues what should be paid attention to.At the beginning of this article,and the related researches of domestic and foreign scholars on the theory of internal audit and audit outsourcing are reviewed.Then we introduce the related concepts and theories of internal audit outsourcing,and take the J department as an example.Based on the introduction of the basic situation of its units,we conducted an in-depth analysis of the implementation motivations of its internal audit outsourcing and its implementation of the three stages of pre-control,in-event control,and post-event control,and a general evaluation of its effect.In the pre-control stage,three paths of strengthening internal control construction with budget control as the main line,carefully selecting the scope of internal audit outsourcing,and selecting suitable suppliers through open tendering are analyzed.The study finds that the level of asset management has been effectively improved,but the cost control still needs to be strengthened.Generally speaking,the prerequisite for pre-control is to strengthen the internal control construction based on the budget.In the in-event control stage,we analyze the three paths of reaching cooperation intentions and signing government procurement contracts,effectively communicating to deepen the outsourcing staff's understanding of the unit's situation,and accurately tracking the management standards to prevent excessive interference.Analysis shows that the key to in-event control is to follow up the implementation of internal audit outsourcing in a timely manner.In the post-event control stage,we discuss the three paths of optimizing the internal audit outsourcing business form,increasing the training of internal audit talents,and establishing and improving internal audit outsourcing quality standards and evaluation systems.The research shows that the guarantee of ex post control lies in actively improving the internal audit outsourcing evaluation system.Finally,this article analyzes the implementation path and evaluation results of the pre-control,in-event control and post-event control of the internal audit outsourcing quality control of J department,and summarizes the experience and issues of internal audit outsourcing of J department.While increasing the importance of important nodes the pre-control,in-event control and post-event control,it is also necessary to strengthen cooperation with external audits to improve the internal control system,which can achieve good control.Through the research of this article,We explore possible advantages in outsourcing actual work,sum up experience,and hope to have substantial help in the selection of internal audit outsourcing work of other administrative institutions,and promote the effective use of internal audit outsourcing in China.