Abstract

Under the background of the rapid development of market economy, the competitive pressure among enterprises is growing day by day. In the continuous practice and exploration, enterprises realize the importance of internal audit. However, due to the fierce competition and the inherent defects of internal audit, more and more enterprises adopt the form of outsourcing for internal audit. However, there are still many problems because the internal audit outsourcing is in the initial stage. Therefore, this paper will theoretically analyze the advantages and risks of internal audit in all aspects, and put forward suggestions according to the analysis results.

Highlights

  • As a necessary means for enterprises to improve their governance structure, optimize their capital structure and achieve their strategic objectives, more and more enterprises begin to realize the importance of internal audit

  • Internal audit outsourcing in the market refers to that an enterprise entrusts all or part of its internal audit business to external contractors in the form of paying for internal audit services by purchasing internal audit services, so as to obtain professional audit resources and solve internal management problems [1]

  • Internal audit outsourcing can better meet the requirements of enterprise management and other management personnel for mastering enterprise information quality

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Summary

Introduction

As a necessary means for enterprises to improve their governance structure, optimize their capital structure and achieve their strategic objectives, more and more enterprises begin to realize the importance of internal audit. Internal audit outsourcing in the market refers to that an enterprise entrusts all or part of its internal audit business to external contractors in the form of paying for internal audit services by purchasing internal audit services, so as to obtain professional audit resources and solve internal management problems [1]. Internal audit outsourcing can better meet the requirements of enterprise management and other management personnel for mastering enterprise information quality. Because China's accounting is introduced from the west, there are many problems, such as defects and imperfect system. As a branch of accounting, audit is more imperfect, so the outsourcing service of internal audit is far from universal. 2. The defects of enterprise internal audit and the necessity of outsourcing services

Defects of Enterprise Internal Audit
Necessity of Outsourcing Internal Audit Services
The Quality of Internal Audit Reports Is Uneven
Information Distortion and Asymmetric Risk
Risk of Trade Secret Disclosure
Strengthen the Management of Internal Audit
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