A Study On Internal Control, Audit Quality And Commercial Credit Model

The commercial credit financing as an important corporate financing, it has the convenience, low cost and other advantages, and the other financing such as banks do not have theadvantage. In the developed Western countries, commercial credit financing have long been using large-scale, case of commercial credit to be settled between the companies is more common. With the rapid and healthy development of the market economy, the scale of China’s enterprises to use business credit has also been considerable development, commercial credit financing more and more importance in enterprises, especially in the mobility enterprise funds tight, and when the business of the credit constraints can not effectively obtain funds from banks and other financial channels, commercial credit financing get more attention of enterprises and be widely used.Strengthening the social credit system and related legal system, promote the development of commercial credit,to provide a good environment for enterprises fully rational use of commercial credit financing, whether it is for the healthy development of China’s market economy, enterprises or individuals who have a significant positive impact, we know that business credit financing can effectively relieve enterprises face financing constraints, reduce financing costs, optimize the capital structure of enterprises, while the diversification of financing channels for enterprises.Scholars have long studied the commercial credit financing, and also the deepening and expansion.Former scholars mainly studied the motivation of commercial credit financing,factors that affect commercial credit financing, as well as alternative financing relationship between commercial credit and bank credit, and made some theoretical results, for example, financing theory of comparative advantage, credit rationing theory.Comprehensive review the results of previous scholars’studies, we can found that commercial credit financing was affected by many factors, from a macro perspective, which affected the overall economic and social development, from which the meso level, it was affected by industry and its market structure, etc., from their own micro level, it was affected by their own business development, financial performance and corporate governance and the like.This paper selects the Shanghai and Shenzhen A-share 2013--2014, China’s listed companies in the sample, studying Internal Quality Control, audit quality and the impact on commercial credit model.The study found that the higher the quality of internal control, the more we can reduce the cost of commercial credit financing; audit quality also has a positive impact on the company’s business credit;further study found that internal controls significantly reduce the cost of commercial credit financing phenomenon, established only in the low audit quality samples (four samples of non-firm), whereas no significant high audit quality samples (four samples for the firm) in.This shows that the internal control and external audit in reducing the cost of commercial credit business process, there is some substitution effect.