| Internal control plays an important role in the stable operation of listed companies.A good internal control environment is conducive to the healthy operation of listed companies.Internal control in the process of execution,information is not enough,agent conflicts and other internal control defects often occur.Perfect internal control can reduce the potential risks of auditors during the audit,auditors can provide more objective audit opinions,and improve the quality of audit reports.The existence of internal control defects will cause auditors to increase the audit cost and audit risk in the audit,so the problem of internal control defects is increasingly concerned by auditors.In this context,this thesis makes an in-depth study of the influence of internal control defects on audit costs,and further explores the moderating effect of property rights and equity balance degree in the above relationship.This thesis uses the method of combining theory and demonstration.First of all,the existing literature is reviewed,and the shortcomings of the current relevant research are analyzed,the research objectives are determined,and a solid foundation is laid for the future research work.Secondly,based on the principal-agent theory,insurance theory,bounded rationality theory and information asymmetry theory,this thesis proposes the basic hypothesis that internal control defects may have a positive impact on audit costs.Finally,this study verified the validity of the above hypothesis through variable design,data collection and establishment of multiple regression models using a variety of econometric analysis methods,and used endogeneity and robustness tests to strengthen the credibility of the conclusion.The research results of this thesis show that there is a significant positive relationship between internal control defects and audit costs,that is,with the increase and degree of internal control defects,audit costs increase correspondingly.The nature of property rights has a significant negative moderating effect on internal control defects and audit costs,that is to say,compared with non-state-owned listed companies,state-owned listed companies’ internal control defects have less impact on audit costs.Equity checks and balances have a significant positive moderating effect on the relationship between internal control defects and audit costs,that is to say,compared with listed companies with low equity checks and balances,the internal control defects of listed companies with high equity checks and balances have a stronger effect on audit costs.This thesis provides micro evidence for in-depth understanding of the impact of internal control defects on audit fees and the regulating effects of property right nature and equity balance degree respectively.It also provides reference for government policy making and accounting firms to charge audit fees. |
