Research On The Effect Of Internal Control Quality On Audit Cost

How to realize the accuracy of pricing and charging is a concern in this field.In China's audit business,there are generally low price bidding methods,which make audit fees often fail to match the realization of basic functions.The existing research is based on audit business,market demand and other pricing system analysis,and ignores the important role of risk-pricing mechanism in auditing fees as a modern risk-oriented audit.As an important component of enterprise risk assessment,enterprise internal control can not only guarantee the fairness and authenticity of financial reports,but also an important basis for auditors to identify and assess enterprise risks.Therefore,the quality of internal control may have an important influence on the formation of audit fees based on risk-oriented auditing.Based on the determinants of audit pricing theory,asymmetric information theory and cost-benefit principle,analyzes the mechanism between internal control and external audit,to the enterprise internal control mechanism of how it affects audit pricing has carried on the empirical research.In Shanghai and shenzhen two city in 2014-2016 a-share listed companies empirical data as the research object,this article selects di bo published database control index to measure quality of internal control,empirically the enterprise internal control audit pricing for the current audit market,and further distinguish the different enterprise property rights,the effects of the risk assessment quality of internal control for the influence of audit fees.This paper finds that the internal control quality can restrain the audit fee premium due to the risk,that is,the high quality internal control reduces the audit fee.Compared with state-owned listed companies,the internal control of non-state-owned listed companies has a stronger inhibitory effect on the audit fee premium.The research value of this paper is to study the influence of internal control quality on audit pricing,so as to verify whether the internal control information is reasonably utilized in the audit process of certified public accountants;Considering the influence of the nature of property right to the use of mechanism,thus to measure under the to distinguish the different nature of property right,the rationality of the audit pricing,and certified public accountants can maintain its independence;The paper intends to enrich the theory of "substitution theory" and "complementary theory" of internal control and external independent auditing,and provide guidance and reference for China's audit market development and the improvement of internal control of enterprises.