A study on the relationship between the internal auditors''

• Main Authors: Lai, Chein-Cheng, 賴建成
• Other Authors: Ma Shiow-Ru
• Format: Others
• Language: zh-TW
• Published: 1998
• Online Access: http://ndltd.ncl.edu.tw/handle/21018520095891900272

碩士 === 淡江大學 === 財務金融學系 === 86 === The banking industry in Taiwan is experiencing increasing competitionafter the deregulation. The emergence of the new banks brings keen competition,and eventually,possible drop-outs. Observation of business failure of U.S.banksreveals the relationship between the weakness of internal control and the busi-ness failure. The importance of internal control can''t be ignored. Internal audit is an integral part of the internal control system,the importance of internal control transfers to the importance of internal audit.One purpose of this study is to understand the status of internal audit functionof the domestic and foreign banks in Taiwan. This purpose of the study is conducted through a questionaire survey of these banks. The second purpose of the study is to investigate whether internal auditorshould participate the design of internal control system. One could argue for the internal auditor''s participate and alleges, internal auditors who are involved in the design of a particular internal control system know the use andlimitation of the system and this knowledge can help evaluation in evaluatingthe system. On the other hand other could argue against the internal auditors''participation, alleging that internal auditors who are involved in the designof a particular internal control system may be reluctant to find faults of thesystem, and ,in turn, their objectivity will be impaired. Our finding is that the internal auditor maintain their objectivity in the subsequent assessment of the internal control, even though they had been involvedin the design of a particular internal control. The probable reason of our find-ing is that the internal auditors are trained and have accommodated themselvesto requirement of maintain mental objectivity over time. As a tradition internalauditor maintain a attitude meatal objectivity even when that audit and assessthe internal control system which they had particular in its design.