Research On Internal Control Quality,Controller Nature And Audit Fees

Since Simunic put forward the model of influencing factors of audit fees in 1980,the academic circles have never stopped studying the influencing factors of audit fees.In recent years,with the development of internal control theory,people began to study the correlation between internal control quality and audit fees.High quality internal control can not only ensure the fairness and truthfulness of financial reports,but also restrain premium charges in the audit process to a certain extent.In addition,as our country is in an economic transition period,many of the listed companies are transformed from state-owned enterprises.There are also some differences in the political relationship between state-owned enterprises and non-state-owned enterprises and the regulatory power they face.The nature of actual controllers also has certain influence on audit pricing itself.It is of great theoretical and practical significance to study the relationship between the quality of internal control,the nature of controllers and audit fees.On the basis of reviewing and sorting out the relevant research documents at home and abroad and investigating the current situation of audit fees in Chinese enterprises,the paper analyzes the relationship between the quality of internal control and audit fees and the relationship between the quality of internal control and audit fees under different controller properties from a theoretical perspective,and puts forward the test hypothesis.Taking 11,776 data of A-share listed companies in Shanghai and Shenzhen stock markets from 2013 to 2017 as research samples,the natural logarithm of audit fees is selected as audit fees,the natural logarithm of Dibo internal control index is selected as internal control quality,the property right nature is divided into state-owned listed companies and non-state-owned listed companies according to the nature of actual controllers,and the relevant financial indicators and accounting firm characteristics of the audited companies are introduced as control variables.Data are obtained by querying China Tai 'an Database(CSMAR)and Dibo Internal Control Risk Database(DIB),and multiple regression analysis is conducted to test the hypothesis.The results show that: 1)the quality of internal control has a significant negative relationship with audit fees;2)Through further in-depth research,introducing the controller nature variables into state-owned listed companies and non-state-owned listed companies,it is found that the negative relationship between internal control quality and audit fees is more significant in non-state-owned listed companies than in state-owned listed companies.According to the above research conclusions,this paper puts forward relevant policy recommendations,which have certain reference value for standardizing audit fees and improving internal control of listed companies.