Research On Quality Control Of Internal Audit Outsourcing Of Private SMEs

The Audit Law of the People’s Republic of China(Amendment Draft)was passed at the executive meeting of the State Council held in 2021.Among them,the revised article 32 emphasizes that units should establish and improve the internal audit system in accordance with the provisions,which reflects the determination of the Chinese government to strengthen the construction of domestic internal audit.The goverument’s emphasis on internal audit construction also indirectly enhances the status of internal audit in enterprise management.However,due to the limitation of enterprise funds,talents and other factors,it is difficult for enterprises in reality,especially private small and medium-sized enterprises,to establish a perfect internal audit mechanism by themselves,which affects the development of internal audit.Therefore,under the premise of satisfying the economy and effectiveness,the externalization of internal audit has gradually attracted the attention of more and more private SMEs.By transferring audit business or functions to external professional intermediaries,enterprises can use the rich audit experience and resources of intermediaries to improve the quality of internal audit and save the cost of internal audit,so as to ensure the efficiency of internal audit and improve the function of internal audit.Although internal audit outsourcing has many advantages,it also faces problems such as improper selection of external professional institutions,non-standard contract signing,and leakage of core secrets,which lead to unsatisfactory quality of internal audit outsourcing.In view of these problems,this dissertation chooses the quality control of internal audit outsourcing as the theme of case study,and tries to provide new ideas for private SMEs to improve the quality of internal audit outsourcing.Firstly,the dissertation introduces the definition of private small and medium-sized enterprises and the related theories involved;then collect the research of scholars at home and abroad,summarize the motivation,advantages and disadvantages of private SMEs’outsourcing and issue questionnaires to analyze the internal audit outsourcing of private SMEs,and find out the reasons for the poor quality of audit outsourcing.Then it analyzes the case company’s internal audit outsourcing in three years,and combines the relevant research results to study the case company’s implementation of quality control methods in the process of internal audit outsourcing,and summarizes the current quality control defects of the case company.On the basis of previous studies,effective and feasible improvement measures are proposed.Finally,the research conclusions are drawn in order to improve the quality of internal audit outsourcing of private SMEs.