Hung and Han (1995) tried to identify the factors that affect the effectiveness of internal auditing for listed firms in Taiwan. A sample of 210 listed manufacturing firms was drawn. They mailed a different questionnaire to the management, the head of audited department and the head of internal auditing department of each company. Findings revealed that the factors that affect management’s perceiving effectiveness are management’s attitude, controller’s attitude, the probability of internal auditors’ promotion, the implementation of performance evaluation, the establishment of job description, and the training and professional abilities of internal auditor.