The Empirical Research On The Influencing Factors Of Audit Fees Of Internal Control

The internal control audit is executed in short time in our country,the related theory of audit fees of internal control auditing is not perfect,and the study remains to be further.The audit fees of internal control for our country has developed to the stage of mandatory disclosure now.More and more companies publish the audit fees of internal control,this provide us an opportunity to study the theory related to internal control audit.Researching the price of internal control audit,helps to make a fair and reasonable audit pricing,and promotes to establish a healthy competition of audit market,and provides the theoretical support for the standards of audit fees.We analyzed the related theoretical basis,including game theory,market theory of supply and demand,cost compensation theory,insurance theory,and found out the possible factors which influencing the audit fees of internal control.The purpose is to make the foundation for putting forward the assumption.Next,we studied the information disclosure of the audit fees of internal control from A listed companies in Shanghai and Shenzhen stock market.For the empirical part of this article,we selected the 2013-2015 continuous data from Shanghai and Shenzhen Main Board A listed companies disclosing the internal control audit fees as the research sample on the complexity of the business,the independence of the board,the concentration rate of stock,reputation of the accounting firm,the legal risks of company,and the alteration of accounting firm,using enter regression analysis and stepwise regression analysis.Through empirical analysis,we drew the following conclusion: If the company has complex business,the price will be high.Hiring the four accounting firms as the service institution will increase the internal control audit costs of listed companies significantly.We selected the legal risk index of listed companies instead of the legal risks of company,found that the company will pay high cost when the legal risk is high.We chosen the top ten shareholders of proportion as the substitution variables of ownership concentration,the study found that the higher the ownership concentration degree,the higher the internal control audit cost;The proportion of independent directors and the fees of internal control audit have positive correlation,but the result is not significant,maybe the reason is that the external supervision function of independent directors are not obvious,and they are not diligently;The correlation between the changed accounting firms of the listed companies and the audit fees is not significant.In addition,the influence degree of various factors which have significant influence to the internal control audit fees are sorted respectively: size of the company,the complexity of the business,the legal risks of company,the reputation of the accounting firm,the local economic level where the company is located,and the ownership concentration of listed companies.Based on the above analyzing the influential factors of internal control audit fee,this paper put forward some relevant policy suggestions and the future research aspects are discussed.