The Influence Of The Internal Control Audit Quality To The Enterprise

Compared with foreign countries, the development of China’s capital market is still not perfect, many listed companies lack of awareness of internal control audit meaning, cause the enforcement of internal control information disclosure rules is far from enough for some companies, is only superficial. The situation caused investors cannot effectively identify the company’s internal control situation, information asymmetry problem did not really get relief, and then, for the sake of risk investors(including the rights and interests of investors and debt investors, similarly hereinafter) in investment will require a high return on investment, and accordingly, enterprise financing costs will increase. This article is precisely based on this, from the perspective of corporate financing cost, discusses the influence of the internal control audit quality on the enterprise financing costs, in order to realize the influence that internal control audit quality of listed companies have on enterprise development, actively implement relevant regulations and promote sustainable development of enterprises.Firstly, this paper generalizes the literature about internal control auditing and the cost of financing, in order to understand the research situation and results, lay the foundation for this article, and then identify the quality of internal audit control, enterprise financing costs and other related concept, and analyze the theoretical foundation of the relationship between quality of internal audit control and the cost of financing, put forward the hypothesis for this article.In order to in-depth study the relationship between the quality of internal control audit and the enterprise financing cost more comprehensive, the article will divide corporate financing cost into equity financing and debt financing costs according to the sources, on the basis of the calculated by the weighted average of the total cost of financing, respectively use the internal control audit, internal control audit opinion type accounting firm scale, and earnings management as substitution variables of the internal control audit quality, establish model, then make regression analysis with the total cost of the cost of financing, equity financing and debt financing costs. Main findings as follows:(1)Based on the internal control auditing cost and financing cost, research results show that the internal control audit fee is higher, the enterprise total cost of financing and equity financing and debt financing costs is lower;(2)based on the internal control auditing opinions and enterprise financing costs, the research results show that the enterprises that internal control audit opinion type is non-standard, the total cost of financing, equity financing and debt financing costs are higher than the enterprise that internal control audit opinion type is no reservations standard;(3)Based on the accounting firm scale and the financing costs the results show that hiring "top 10" certified public accountants to conduct internal control audit, can obviously reduce the cost of debt financing of enterprises, but it is not obvious with enterprise of total equity financing cost and financing cost impact.(4) Based on earnings management and the enterprise financing costs, the research results show that the real earnings management and the enterprise total cost of the cost of financing, equity financing and debt financing costs were significantly positive correlation, and accrued earnings management and the enterprise total cost of the cost of financing, equity financing and debt financing costs, there is no significant correlation.To test the robustness of empirical results, the article divide public accountants to "four big" and "the four major" as the foundation, as an alternative variable internal control audit quality further do the regression analysis, the results further verify the above empirical results: companies hire the top of the accounting firm, can significantly reduce the cost of debt financing, there is no significant influence between i the total cost of financing and equity financing cost.based on the above research conclusion, we put forward some countermeasures and Suggestions from three point of view about the regulatory level, level of listed companies and CPA firm level.(1) regulators level: strengthening the enforcement of enterprise internal control audit work, the internal control setting clear measurable, strengthen the supervision of certified public accountants;(2) The listed company, the second level: to strengthen the internal control auditing consciousness, pay attention to the internal control audit quality;(3) registered public accounting firm level: it is recommended that certified public accountants to improve their practice ability, conservative professional ethics.