Internal Control Audit On The Quality Of Accounting Information And Cost Of Financing

In the early 21st century, a series of major fraud cases happened in the United States show the world that the failures of company's internal control have led to disastrous consequences. It also raised the profound reflection of the market and regulatory departments on the internal control system of the company's. To prevent similar incidents from happening again, the United States issued the first "Sarbanes-Oxley Act" to strengthen the supervision of the internal control of listed companies, other countries have also amended its regulation on internal control regulations. Since then, the effectiveness of internal control of listed companies have become an important part of supervision, the internal control of listed companies began to enter the regulatory phase.Based on this background, this paper take the internal control audit of listed companies in China as the research object, research in the current information disclosure environment, the company Voluntary Disclosure of internal control and internal control audit on the impact of accounting information quality; by studying the internal control audit the company's financing costs, inspection of listed companies to implement internal control audit of the market reaction to regulate listed companies internal control disclosure of information to improve the accounting information disclosure quality, fundamentally curb the occur of financial fraud and accounting information distortion, providing information to promoting the capital markets develop healthy.Firstly, defining the related concept of internal control audit, then analysis the relationship of internal control and auditing, accounting information quality and corporate finance cost, providing a theoretical basis for the proposed hypothesis of this paper, and through the descriptive analysis of Shanghai-listed company's internal control attestation report in 2007-2009, to understand the status and problems of internal control audit.According to the theoretical analysis and assumptions, in the empirical study, we construct the model to analyze the impact of the disclosure of internal control and internal control audit on the quality of accounting information, found the company after internal control audit have higher quality accounting information, and there is no a significant correlation between internal control Voluntary Disclosure of information and accounting information quality. Then, the paper empirical test the audit of internal controls and corporate financing costs,to validate the market for listed companies to voluntarily audit of internal control reaction, the results show that the audit of internal control does not reduce the company's financing costs, the internal control audit reports of listed companies has not been recognized by the market.Finally, summarize the main conclusions of this paper and put forward some specific policy proposals, and point out the shortcomings of the study, pointing to the direction for the future research.