Research Of The Impact Of Internal Control Defects On Internal Control Audit Fees Under Integrated Audit

Internal control is the first firewall inside an enterprise to prevent mistakes and frauds in financial reports and ensure the integrity of financial information.The important role is self-evident,but it has not received enough attention in the past for a long period of time.Until the occurrence of financial frauds such as Enron and WorldCom,countries have started to establish a sound financial reporting information quality assurance system(internal control system).For example,the United States has promulgated the famous Sarbanes-Oxley Act,which requires auditors to have "financial reports." The effectiveness of internal controls is audited.This means that internal control audits and auditing of financial statements have become regular and cyclical businesses.The data on the defects in this article comes from the Diebold risk control database.It uses qualitative and quantitative methods to study the relationship between internal control defects and internal control audit fees.The research process takes into account China's unique internal control rules and auditing model.Qualitatively,it first combed the 'research of previous generations in the form of literature review.The main content was which factors would affect audit fees,internal control audit fees,what conclusions were drawn,future prospects,etc.,compared with scholars.The similarities and differences in the study were followed by a theoretical analysis.According to the theory,three assumptions were proposed.Insurance theory,deep pocket theory,etc.were used to support hypothesis 1,cost-effectiveness principle was used to support hypothesis 2,and support hypothesis 3 was The economies of scale effect and knowledge spillover effects;Quantitative research is mainly based on the use of stata and other measurement tools,using multivariate OLS methods to return to analyze whether the internal control audit fees will be affected by the impact of internal control defects and the degree of impact.China's economic system is different from the United States and Japan,and the economic development mode is far from the same.Therefore,China's norms and guidelines for the auditing industry also differ greatly from those in the two countries.For example,internal control audits have both integrated audits and separate audits.The two models,based on this background,introduce the integration audit model variable,establish a regression model,and analyze whether this.audit model will enhance or weaken the influence of the internal control flaw on the internal control audit.The study finds that:Internal control defects have a significant positive impact on internal control audit fees;different levels of internal control defects have different effects on internal control audit fees.Generally,there are significant defects that have significant impact,and important defects may also be It will have a certain impact on the fees.In most cases,the general defects do not belong to the factors that will affect the audit fees for internal control;under the integrated audit model,the impact of internal control defects on audit fees for internal control has weakened.Finally,from the aspects of cultivating the spontaneous needs of internal control of enterprises,giving full play to the supervisory role of government departments,and advocating the integration of auditing services,we hope to provide valuable reference for audit firms in the audit pricing strategy for the audit industry in China.Healthy development to do a little "bit of strength.