Research On The Relationship Between Internal Control Quality,Audit Quality And Commercial Credit Financing Level Of Enterprises

The development of most small and medium-sized enterprises is restricted by financing difficulties and expensive financing.Commercial credit financing has the advantages of convenient financing,less restrictive conditions,low financing cost and so on,which can alleviate the financing predicament of small and medium-sized enterprises to a certain extent.It is estimated that the proportion of commercial credit financing of small and medium-sized enterprises in current debt has increased from46.51% in 2010 to 53.90% in 2017,more than half of current debt.This paper attempts to study how to improve the commercial credit financing level of small and medium-sized enterprises from two angles of internal control quality and audit quality.Firstly,this paper reviews and summarizes the domestic and foreign literature and puts forward the basic assumption that the quality of internal control is positively correlated with the level of commercial credit financing,the quality of audit is positively correlated with the level of commercial credit financing and the joint influence of internal control quality and audit quality on commercial credit financing level is interactive according to the theory of credit rationing,the theory of information asymmetry,the theory of signal transmission,the theory of principal-agent and the theory of comparative advantage of financing.Secondly,the descriptive statistical analysis of explained variable,explained variables and the control variables is carried out in this paper.The level of commercial credit financing is selected as the explained variable.The internal control quality and audit quality are taken as the explanatory variables.Control variables include the rate of return on assets,the scale of bank credit,the financial leverage,the growth ability,the ability of asset mortgage,the net cash flow of operating activities,the nature of property right,the size of the company and the turnover rate of assets.Thirdly,in order to verify the assumption,the multiple linear regression analysis is carried out by establishing three models.Internal control quality and audit quality have different influence on the level of commercial credit financing with the different nature of equity,through which,enterprises can be divided into state-owned enterprises and non-state-owned enterprises.Finally,it's necessary to test the robustness of the commercial credit financing level,internal control quality and audit quality.These variables are respectively substituted by(accounts payable-notes receivable-prepaid accounts)/total assets,comprehensive internal control,the evaluation index and firm size.Based on the above,the following conclusions can be drawn: high-quality internal control and the high-quality audit can improve the commercial credit financing level of the small and medium-sized enterprises;the combined effect of internal control quality and audit quality on the level of commercial credit financingpresents a "complementary type" interaction.Therefore,some suggestions are provided for small and medium-sized enterprises.They should not only improve the internal control system and improve the internal control quality but also select the auditors with the industry expertise to improve the quality of the audit.What's more,they need to give full play to the function of the commercial credit as an alternative financing tool for bank loans.