The Effect Of Internal Control Auditing On Audit Quarlity

With Enron,WorldCom and other large financial scandals exposed,reflect a problem:internal control system is not sound.The twenty-first century,in order to strengthen the internal control system,the supervision both here and abroad on the capital market is more strong,internal control auditing as an assurance service emerged.Ministry of Finance and other five ministries in 2008 has jointly issued the "basic norms of internal control" and "enterprise internal control guidelines",it marks establishment of our internal control audit system.System requirements for the implementation of the basic norms of internal control of the company,on the effectiveness of the Company's internal control self-evaluation,self-evaluation annual report disclosures,and hired accounting firm auditing the internal control self-assessment report,issued by the internal control audit report,but not mandatory to disclose.In the implementation of internal control audit mode,Auditing Standards US Public Company Accounting Oversight Board(PCAOB)release of the second number(AS2)and the fifth number(AS5)are required to auditing the internal control audit of financial statements together with the implementation,and our country only in the "enterprise internal control supporting guidelines" in the audit guidelines fifth provisions:certified public accountants can be a separate internal audit,can also be internal control audit and financial statements audit integration.The implementation of internal control audit is helpful to the improvement of the quality of financial statements in the implementation of the internal control audit in batches,and in the implementation of internal control audit,it should choose the integration of audit or non integration audit is the need for empirical testing.On the basis of reviewing the domestic and foreign related internal control and internal control audit system,this study investigates the current situation of implementation and effect of internal control auditing on financial statements audit quality by using Shanghai and Shenzhen A-share stock market listed companies in 2012-2014.This peper find that,the absolute discretionary accruals in the companies which were disclosed internal control audit reports is significantly lower than that of the other companies.Integrated auditing,as the mainstream audit pattern,has no effect on quality of financial statements auditing.The findings indicate that integrated auditing may exist problems of profession andindependence,intergraded auditing method must not be encouraged.