Dose Internal Control Quality Can Influence Audit Delay?

People’s economy nervous will be deeply tenderness by emergence of financial fraud scandal. The outbreak of Enron and Worldcom’s scandals prompted the United States issued stem Sarbanes-Oxley Act. Conform to China’s national conditions and the development of the enterprise actual, our country also introduced the Enterprise Internal Control Basic Standard and Guidelines on Internal Control of the Enterprise.Shanghai and Shenzhen Stock Exchange entacted Guidelines on Internal Control of Listed Company respectively in2006.which points out the requirements of the internal control self-evaluation report and internal control audit reporting. At the arrangement of Annual Reports Discloser by Shanghai Exchange published in2009and2010, Listed Company can disclose Internal Control Self-evaluation Report (hereinafter "ICSR") and Internal Control Audit Reports(hereinafter "ICAR") at self-condition. However, at the arrangement of Annual Reports Discloser by Shenzhen Exchange published in2009and2010, Listed Company must disclose ICSR, and disclose ICAR at self-condition. Based on the requirement of Shanghai and Shenzhen Stock Exchange, the author believes that our country’s internal control disclosure are undergoing voluntary disclosure to mandatory disclosure currently, that is half mandatory disclosure stage.The internal control requirements originated in the internal contain, and strengthen by financial fraud. Amention of financial fraud, it cannot leave audit alone. The influence of internal control on audit is one of the internal control economic consequences. The internal control of the audit influence can be reflected in the auditing expense, the audit opinion acquisition and the auditors’ change. And dose the internal control can influence audit delay? What is the audit delay? The days between the date of the balance sheet and the audit report. Audit the delay is the important factor of corporate annual reports delay. There are many factors of Audit delay:the company size, complexity of accounting and losses of cooperation and so on. But the main content of the study is what’s the specific influence and how to influence of the company’s internal control on audit quality.The first question that we should settle is how to evaluate the quality of internal control. At internal control’s concerned, no matter design or operation link, the existence of deficiencies or not is very important criteria. Therefore, defect is the measure of internal control quality and index respectively from the ICSR, violate compasses, auditing and disclosure. Then, we began to judge whether the company existing deficiencies of internal control from these aspects, and according to the degree of defect, we divided into general deficiencies and material deficiencies, and compare the audit delay between kinds of deficiencies.In addition, this paper also compared the company who disclose the ICAR with unqualified opinion to the company who don’t disclose the ICAR of audit delay. Finally, we put up with relevant opinions and suggestions through the empirical results, and points out the limitation of this paper.This article is divided into six parts, the detailed introduction as follows:Chapter One:Introduction. It introduces the background and significance of this paper, and according to determined purpose, points out the content and research framework, and points out the innovation.Chapter Two:Literature Review. This chapter introduces early studies separately from the foreign and domestic parts of the audit delay, the internal control quality and the relation of audit delay and internal control quality. This part is not only related to the theme of the research of comb, and also the validation whether it has the feasibility and innovative or not.Chapter There:The theoretical analysis and the internal control deficiencies are confirmed. This chapter is the core premise of the content. First of all, it introduced the process and motivation of internal control information disclosure and ICAR with the signal transmission theory. Second, it explored the contact between the audit and internal control development with the four stages. Finally, to put up with the internal control assessments of the quality standard, mainly from the confirm of internal control deficiencies.Chapter Four:Research hypotheses and design. Based on the theoretical analysis and the defect recognition of the internal control in the third chapter,it put forward the three assumptions. Consult early references, we construct the model design, and analyses the correlation between the control variables and be explained variables, besides give the requirements of the sample choose.Chapter Five:Empirical test and analysis results. SPSS is the statistical analysis software. At the beginning, we do the descriptive statistics for each variable of the sample company. Then the correlation test among all variables. Last but not the least, multiple linear regression the relationship between explain variables and audit delay as well as the control variables and audit delay.Chapter Six:Conclusion and suggestion. Firstly, we analyse the empirical results. Then, introduced revelation from the empirical test, puts forward some suggestions for development of internal control and audit. Last part is innovation and limitations.The innovation of this paper mainly reflects in the following three aspects:First of all, this paper selects the period from voluntary disclosure of internal control to the mandatory disclosure, comparison the effects of voluntary disclosure of the internal control auditing report or not to the auditing delay. It offer theoretical and practical basis for internal control disclosure.Second, the empirical studies of this topic are rare in domestic. It strip out audit timeliness from the financial report discloser process, named audit delay, focus on the relationship between internal control audit quality and audit delay.Third, on the basis of measurement about internal control quality related research, we summed out of some signs of the internal control deficiencies, analysis respectively from the ICSR, audit report, violate compasses, information disclosure evaluation.