Use Of Enterprise Internal Control Factors External Audit Pricing Equation Is Established

As a tool of improve the process of the internal operations in the company, monitoring theinternal operation of the enterprise to insure the realizing of operation&strategic object ofthe company, the internal controlling aims to grantee the Standardization of internaloperation and access to the real internal operational status information of enterprisedevelopment. The external audit of listed companies is done in order to meet the nationalregulatory requirements for the supervision of the internal financial operations andproduction operations by hiring a third party independent auditing services institutions tocheck The authenticity of financial data and confirm internal status of the implementationof various internal controlling systems, issuing investigation report ultimately to the marketin accordance with the findings in the process. as an internal control mechanism which canaffect the operational effectiveness of internal business process and ensure the complianceof the operation of enterprises, the existence of the internal control will inevitably havesome impact on the pricing level of audit services which inspects the internal operationeffectiveness and compliance.By the application of the multiple regression analysis method, the thesis First design a fiveset of indicators which characterize the five key elements of internal control-controlenvironment, risk assessment, control measures, information&communication,feedback&supervisions o that to characterize the effectiveness of the implementation ofinternal control measures in its five aspects. Secondly, with the help of the Schwarzinformation criterion, this thesis continue to remove each element of characterizationvariables in the various set in cycle, checking change of Schwarz criterion so that to decidewhich indicator can stay in the sub-element of the Internal control multiple regressionequation for its audit expenses, And ultimately the form a breakdown of the variable indexset of the five internal control elements within the framework of corporate finance,operations, governance characterization. Finally, by setting the indicators within thedifferent elements of internal control and all the preferred indicators related to internalcontrol as the explanatory variable, setting Costs of external audit expenditures asexplanatory variables, the thesis build six different perspectives of the multiple regressionanalysis equation for the relationship between internal control and audit pricing. By theequation of the results of the analysis the thesis provide tangible practical reference for the audit service provider at audit pricing strategy and make some recommendations onbuilding key point of internal control system...