Research Of Correlation Between Internal Control Risk And Audit Pricing

Internal control and audit pricing research, has long been seen as a hot audit study, with the Chinese Ministry of Finance, the Commission, the Audit Commission, CBRC, CIRC issued by five ministries,"the basic norms of internal control" and "internal control supporting guidelines," China’s internal control system to regulate the construction, while the attention of internal control of listed companies increased substantially. Pricing audit in the audit services market, accounting firms audited units with an important link between economic performance, understanding of which decisions affecting the audit pricing factors help to regulate the audit market fees, the audit market to maintain a reasonable and orderly competition.In this paper, internal control risk and audit pricing of its related issues, data collection is used in part of the Shanghai and Shenzhen A-share market listed companies in2008and2010annual reports of publicly available data, and then make assumptions, based on the definition of several variables the relevant audit pricing theory based on the establishment of multiple regression equation, after descriptive statistics and linear regression results, the conclusions of this study has been:we have come to internal control risk and audit pricing is positively correlated, but this correlation is not very significant. Which explanatory variables to control risk, the listed companies the natural logarithm of total assets, debt ratio of listed companies, whether by the four major accounting firms auditing listed companies is being issued standard unqualified audit opinion on the most significant, consistent with the original theoretical analysis, Most scholars also consistent findings. The sum of inventory and accounts receivable to total assets ratio and return on equity of these two explanatory variables, due to the different year, different positive and negative regression coefficient for the impact of the audit pricing model significantly inadequate.