Research On The Relation Between Audit Fees And Annual Report Violations,Internal Control Deficiencies

Audit fees in the audit business are a relatively important issue.Audit fees are the pricing of the resources invested by the firm.The audit pricing consists of two parts: audit cost and risk premium.The predecessors mainly discuss the influencing factors of audit fees from three aspects: Audit unit characteristics: such as industry,region,scale,business complexity,etc.;firm: such as scale,brand,change,merger,etc.;corporate governance situation 2006 Ministry of Finance issued guidance on risk-oriented audit and audit risk The model provides policy and theoretical guidance for CPA audit resource allocation.Investing more resources in areas prone to major financial misstatements can be inferred that auditing customers' major financial errors or violations will be an important factor affecting audit fees.Moreover,predecessors have a common understanding of internal control of enterprises.Internal and external internal control research scholars and even many financial personnel have a common understanding of internal control of enterprises.Internal control is necessary.Internal control is not only highly valued and valued within the enterprise,but also important in non-profit organizations such as government units and business institutions.However,some companies still do not avoid the edge,such as financial fraud and fraud,annual report violations,audit failures,financial risks and other events continue to occur,so they have to pay close attention to the internal control system and its operation.On the one hand,the state as an “invisible hand”,the various regulatory authorities should impose strict internal control norms and measures on each enterprise and strictly control it.The listed companies themselves need to strictly demand the internal control design,implementation and supervision of the company.On the other hand,it also motivates theoretical researchers to examine the theoretical results of internal control from a new perspective,and to rethink the related issues of internal control,so the annual report violations,internal control defects and their classification The relationship of audit fees is worthy of attention.The research ideas and contents of this paper are as follows: Chapter 1,Introduction: This paper introduces the research background,research significance,research content and technical route,research methods and innovations,and has a general summary of the whole article.Chapter 2,Literature Review: combing domestic research results and foreign research conclusions,from the internal control effectiveness,the classification of internal control defects,the relationship between annual report violations and audit fees,the relationship between internal control defects and audit fees Review and comment.Chapter 3,System Background: Introduce the background of the audit pricing system,the background of the annual report violation system,the background of the internal control system,and the institutional background of internal control defects,and fully understand the relevant systems.Chapter 4: The theoretical basis,from the principal-agent theory,risk premium theory,stakeholder theory,cost-benefit theory,contract theory and incentive theory,analyzes the impact on audit fees based on different theories.Chapter 5: Theoretical analysis and research hypothesis,according to theoretical analysis,and put forward four major assumptions: the positive correlation between the annual report violation and the audit fee;the internal control defect and the audit charge are positively correlated;as the defect level increases,the general defect,Important defects and major defects have an increasing impact on audit fees;internal control deficiencies will weaken the positive correlation between annual report violations and audit fees,and as the severity of defects increases,the weakening will be more severe.Chapter 6,Research Design: Establish models,define variables,including explanatory variables,interpreted variables,regulatory variables,control variables,and other variables,and select sample data(2015 to 2017).Chapter 7,Empirical Analysis: Using stata13.0 for panel analysis,descriptive analysis,correlation analysis,regression analysis,robustness testing,and conclusions.Chapter 8,clarifying the conclusions,drawing inspiration and making recommendations.This article is no longer limited to the study of the relationship between annual report violations and audit fees,or the relationship between internal control defects and audit fees,but further studies the different classifications of internal control defects,that is,the relationship between subcategories and audit fees.And the internal control defects as a regulating variable,the paper studies the adjustment effect of internal control defects on the relationship between annual report violations and audit fees,and has reference significance for accounting firms and listed companies...