The Relationship Between The Quality Of Internal Control ?External Governance Environment And Audit Pricing

The public department, ministry of finance of the accounting department in the accounting department and the listed companies in China in 2013 the implementation of enterprise internal control standard system situation analysis report suggested in the research of small and medium-sized board and gem listed company carry out internal control standard system, will further expand the scope of internal control standard system, supervise and urge the listed company to strengthen the construction of internal control, and constantly improve the internal control of listed companies to disclose, increase penalties for illegal disclosure internal control, to regulate the implementation of internal control for effective supervision and inspection, to promote the effective implementation of related laws, regulations and policies, etc. Thus in perfecting the internal control construction in our country, the increase scope, not only focus on main board listed company internal control construction, to the construction of internal control of small and medium-sized board and gem is also actively explore. And gradually in the form related consulting, services, including accounting firms, such as intermediaries for auxiliary support, the securities and futures commission, the ministry of finance and other supervision department as the leadership of the internal control supervision system. And to formulate and improve relevant internal control policies to strengthen the certified public accountants auditing and monitoring of listed companies, listed companies at the same time improve the internal control system construction and implementation.Research of this paper is based on the research on audit pricing has been relatively mature, while the internal control of listed companies in China are improving, the level of internal control effectiveness with the substantial increase of the realistic background. Using empirical research method, the analysis of the internal control effectiveness and audit pricing, the relationship between and considering the different system background, the background of China's market is very significant difference with the mature markets in Europe and America, and the foreign research conclusion may also vary, North and Thomas(1993) argues that different external governance environment will produce different market transaction costs, leading to the different behavior of the enterprise. Relatively speaking, China's capital market is still in a lower level of legal protection of the environment, thus to adapt to the governance environment will be significantly different compared with the mature European and American countries, and because the problem of unequal distribution of resources, the marketization degree of differences between our country is larger, the listed company's external governance environment inevitably exist significant differences, therefore this article also from the perspective of governance in different areas of the environment, considering the influence of the quality of internal control.Therefore, this article through to 2011 to 2014, the gem data to carry on the empirical analysis of listed companies, study the influence of the internal control the quality of audit pricing, and different levels of external governance environment's influence on the relationship between internal control quality and audit pricing. Study found that to achieve the goal of internal control degree affect the certified public accountants audit pricing, namely to achieve the goals of the internal control level is higher, the better the quality of internal control, the lower the audit fees; And further found that improve the external governance environment to further restrict the relationship between governance and internal control audit pricing.