Internal Control Quality?Property Rights And Audit Fees

The negative news of the audit firm's low price bidding audit project has aroused widespread concern in the society,and the normative nature of audit pricing has been questioned.The audit fee serves as the bond linking the audited entity and the accounting firm.Its determination is based on the full and two-way selection of the paying party and the charging party under the role of the market mechanism.Reasonable and regulated audit fees are conducive to a healthy and orderly audit market.Development and resource optimization of capital markets.With the continuous development of the audit market,the factors that affect the audit fees are also increasing.The quality of internal control is an important factor affecting the auditing costs.High-quality internal control not only ensures the fairness and truthfulness of the financial report,but also has a certain inhibitory effect on audit premium charges.In addition,due to the need for economic transformation,many of China's listed companies are transformed from state-owned enterprises.There are also many differences between the political relevance of state-owned enterprises and private enterprises and the supervision power they face.The nature of the ultimate controller also has a certain impact on audit pricing itself.The influence(Guo Mengxi and Li Minghui,2009).In view of this,from the perspective of the role mechanism between internal control and external audit,this paper studies the impact of internal control on audit costs,and introduces the regulatory variable of the nature of property rights to further examine whether the impact of internal control quality on audit pricing under the nature of different property rights exists.difference.This paper adopts an empirical test method and uses the empirical data of A-share listed companies in Shanghai and Shenzhen in 2014-2016 as the research object,taking into account factors such as the size of the company,the risks of the company,the characteristics of the firm,and the degree of economic development of the listed company.Impact on audit fees.As the construction of China's internal control system is gradually standardized,the relationship between internal control quality and audit fees has become the focus of research by some scholars.The existing literature in China focuses on the relationship between internal control quality and audit costs,and on the The relationship between the nature,quality of internal control and audit costs is less involved.In addition,in the existing studies,the quality of internal control is mostly measured by the disclosure of internal control defects.This paper selects the internal control index published by the Dibo database to measure the quality of internal control and is more fair.The characteristics of this paper are as follows:(1)This article examines the auditing process of the CPA as an example to verify whether the audit pricing of the audit market in China utilizes internal control.(2)By studying the changes in the quality of internal control and auditing costs of enterprises with different property rights,the study on the relationship between internal control quality and auditing costs is supplemented.Based on the theory of audit pricing determinants,information asymmetry theory,and cost-benefit principles,this paper uses sample data collected by aggregation,uses empirical methods that combine qualitative analysis and quantitative analysis,and conducts empirical research,thus providing policy development departments with some empirical data..The findings of this paper are:(1)There is a negative correlation between the quality of internal control and audit costs.(2)Further distinguishing the nature of different property rights After discussing this mechanism,it is found that this relationship is more pronounced in non-state listed companies than in state-owned listed companies.Based on the above findings,the research in this paper has certain reference significance for improving the internal control quality of the company,standardizing the audit pricing,and improving the audit work efficiency.