Research On The Relationship Between Internal Audit Quality And Audit Fees

According to the Chinese certified public accountants auditing standards no.1411,using the internal auditor’s work "requirements,the certified public accountants may from the objective independence of internal audit,internal audit personnel in the work whether have the professional attention,internal auditors should have professional competence,and is able to effectively communicate in certified public accountants and to evaluate the quality of internal audit,and make use of the internal audit work.Foreign studies have conducted research on the external audit evaluation,the use of internal audit work,and the relationship between internal audit quality and audit costs from both theoretical and empirical perspectives.So,how does the quality of internal audit affect the CPA audit fees?Research scholars have shown that under the premise of high-quality internal auditing,external auditing makes use of internal auditing work to improve auditing efficiency,reduce auditing costs,and reduce auditing costsHowever,relative to foreign research results,domestic research started late and research results are relatively poor.With the continuous development of internal auditing,and the constant improvement of standards and systems,many variables studied in the past have not been adapted to current standards.In real life,many companies do not pay enough attention to the functions of internal audit institutions,neglecting the synergy between internal audit and external audit,and failing to play the real role of internal audit.Therefore,these all show that the relationship between the two is an issue that needs attention and urgently needs further discussion.This paper adopts a combination of literature research and empirical analysis to select the data of Chinese listed manufacturing companies from 2014 to 2016 as samples,and studies the relationship between internal audit quality and audit fees.Firstly,combing related literatures at home and abroad,applying the theory of fiduciary economic responsibility,corporate governance theory,and transaction cost theory,we theoretically analyze the relationship between internal audit quality and audit costs,and propose research hypotheses.Then use the conventional conventional indirect research methods,use unanticipated audit fees as substitutes for audit fees,and indirectly examine the relationship between internal audit quality and audit fees.Finally,direct research methods are used to directly link the quality of internal audits with audit costs to verify the accuracy of indirect research conclusions.The main contributions of this paper are:(1)The selected internal audit quality measurement variables are different from those of previous scholars.According to the continuous development of auditing standards,the independence and objective fairness of internal audit that is more in line with the existing norms are selected,and the internal auditors ’ Professional competency and internal audit quality control are the three variables.(2)Start with the relationship between external audit and internal audit,study the impact of high-quality internal audit on audit costs,and put forward relevant policy recommendations based on research conclusions: The company should pay attention to internal audit and strengthen internal audit function;external audit agency should Use high-quality internal audit work to reduce audit costs;norm-setting and market managers should strengthen policy implementation and supervision,and implement laws and regulations.