An Empirical Study On The Relationship Between Effectiveness Of Internal Control And Audit Delay Of Listed Companies

In June2008, the Ministry of Finance jointly issued by five ministries,"the basic normsof internal control"(the "Basic Standards"), created the development of China’s new era ofinternal control. From an economic point of view the consequences of the company byimproving the effectiveness of internal control, reduce the overall level of risk, reduce auditrisk, thereby reducing the audit delay.While Chinese securities market after ten years ofdevelopment, more and more perfect the internal control of listed companies, listedcompanies in China, but the overall effectiveness of internal control is still not optimistic.Weak internal controls will increase the possibility of the existence of accounting errors andthe errors of difficulty, so there are internal control weaknesses, auditors need to expand theirscope of work and additional substantive tests to reduce audit risk, resulting in longer of theaudit delay. The effectiveness of internal control of listed companies on the audit delay hadwhat effect our attention. This paper empirically analyzes the effectiveness of internal controlfor the impact of audit delay of listed companies, is designed to improve our internal controlmechanisms to make recommendations.In order to study the effectiveness of internal control of listed companies with thepotential correlation between the audit delay, Firstly, this paper defines that used in the studythe effectiveness of internal control definitions and measurement methods and describes theempirical research in the selected method of calculating the audit delay. This article listedcompanies in China to build a comprehensive evaluation of the effectiveness of internalcontrol index (ICQ), covering China’s "Internal Control Standards" under the four objectivesof internal controls, and using paired-samples test the sensitivity of the indicators to provethat this paper targets feasible. Secondly, the effectiveness of internal control from theeconomic consequences are analyzed the relevant theory, put forward two hypotheses of thisarticle, and analyzed the impact of listed companies, the audit delay-related factorsinfluencing and as a control variable. Again, the two securities market on the Shanghai andShenzhen in2009and2010has been listed4075as the research object, from an empiricalpoint of view analysis of the effectiveness of internal control of listed companies on auditdelay, effective internal control of listed companies in China of the audit delay impact of the test.Finally, we propose recommendations to improve the effectiveness of internal control oflisted companies and improve our internal control information disclosure mechanism, reducethe audit delay.The significance of this research, through empirical studies have shown the effectivenessof internal audit delay of listed companies, making the listed companies to improve internalvalidity by reducing the audit delay of spending more scientific, targeted, systematic andfeasible。...