Research On The Effect Of Internal Control Auditing On Audit Quality Of Financial Statements

The risk of fluctuations in the global capital markets intensified since the beginning of the21st century, well-known corporate bankruptcy cases often staged at home and abroad due to the outbreak of the financial scandals. All these cases reflected a common problem while exploring the reasons:the internal control system is not perfect, or has not been effectively implemented. The primary purpose of this paper was to strengthen the responsibility of listed companies, and to restore public confidence in the capital markets, governments gradually began to strengthen the supervision of the internal control of the listed company, in order to complete the establishment and implementation of the internal control system.The treasury department, the securities and futures commission, the audit commission, the China banking regulatory commission, China insurance regulatory commission has jointly issued the "enterprise internal control basic norms" and "enterprise Internal control auditing guidelines". Enterprise internal control auditing guidelines is an authoritative norm to guide our internal control auditing. It has been purposed on inside and outside listing companies since January1,2011and purposed on companies which are listed on the main board of Shanghai stock exchange and Shenzhen stock exchange. On this basis, choosing small board and GEM listed company to be purposed. At this point, the internal control auditing in China has entered the stage of compulsory auditing. As a certified public accountant audit business in an emerging legal attestation engagement, whether internal control auditing will impact on the quality of financial statements auditing? These problems have gradually become a topic of common concern in the theoretical and practical circles.In this study, on the basis of domestic and foreign internal control auditing and the audit of financial statements audit quality literature is reviewed and summarized, introduced the followings as a theory of the full text:the theory of fiduciary duties, the theory of institutional change, signaling theory, insurance theory and reputation theory. The specific research can be briefly described as three parts:Firstly, through a questionnaire survey to understand the internal control audit of the implementation of the current situation and existing problems in our practical work, and analyzing the impact of the internal control auditing on the financial statements auditing quality. Secondly, Shenzhen and Shanghai A-share listed companies in2010-2011as the research object, and select released internal control auditing reports of listed companies in the past two years as research samples, by assuming that the proposed variable selection, model and analysis ultimately come to the internal control auditing of the financial statements for audit quality. Finally, from both the macro and micro aspects to promote the internal control audit to improve the quality of financial statements auditing, hoping to leave helpful ways for the implementation of internal control auditing.