Study On Internal Control And Audit Pricing

In this dissertation, a research has been made to analy the effect between information disclosure of internal control and audit pricing. We use the data from 2007 to 2008 of listed companies in Shanghai Stock Exchange and in Shenzhen Stock Exchange, and focus on whether the listed companies to disclose internal control self-evaluation report, whether to disclose internal control deficiencies and whether to disclose the internal control aduit report, in order to explore the correlation between information disclosure of internal control and audit pricing by means of the empirical method. Study find that whether to disclose the internal control self-evaluation report and whether the audit disclosed internal control deficiencies are not significant related to audit pricing, but whether to disclose the internal control audit report and audit pricing of a significant positive correlation between the relationships. In our China's market, audit pricing due to the cost and the risk of the audit. Whether to issue internal control self-assessment report and the disclosure of internal control deficiencies guidance on audit pricing of little value. We also find the scale of listed companies, complexity and whether audited by the "big four" which is the most important factors of audit pricing, have a significant positive correlation of audit pricing. ROE and the rate of independent directors to the size of the Board of directors and the audit opinion have a significant negative correlation, but don't find out whether an audit committee have significant relationship between the audit pricing.