Research On Association Between Audit Of Internal Control And Financing Cost In Listed Company

Since2000, the international well-known enterprises had broke out financial fraudscandal, American Enron event, Xerox Co, MCI World Com, in China also have a similarcase, such as the influential Yinguangxia event, Cologne, Jiulong Electric Power, the moongroup, Tianfangyao industry, the most reason was the lack of internal control effectiveness,on the one hand，those cases produce disastrous consequences to shock the world, on theother hand, greatly improving the people attention to the internal control systemconstruction, implementation, evaluation, and spawned a series of policies and measuresissued by government regulators, America first promulgated the to enhance the supervisionand management of control internal listing Corporation with “Sarbanes-Oxley act”, thisact is considered a sign of internal control act, since then many countries according to theirown situation, have begun to introduce its own national conditions based on the internalcontrol supervision and management act.The effective of internal control is an important index to internal control regulation, inour country, the evaluation of the effectiveness of internal control by the listingCorporation voluntary disclosure of internal control evaluation report，to the presentby the third party audit of internal control in the listing Corporation, financial informationthe user information, objectivity and authenticity of the internal control of the listingCorporation have been obviously,in the base, we uses listing Corporation audit of internalcontrol as the research object, conducts the research to the internal control audit and thecost of financing correlation problem, thus financing cost angle detection market to reflectthe situation of internal control audit listing Corporation, expect to improve the audit ofinternal control and the importance of enforcement, contain a variety of financial fraud.In this paper, according to the audit of internal control in the research background andresearch significance, then introduced the domestic and foreign research present situation,again, on the basis of the existing literature, expounds the internal control audit relatedconcepts and theoretical knowledge, based on signaling, information asymmetry, preanalyze the relationship between audit and internal control testing cost of financing listingCorporation risk theory, and put forward the hypothesis. In the empirical part of this article,by constructing the influence analysis of audit of listing Corporation financing cost internalcontrol model, and further analysis of the impact of internal control auditor reputation on financing cost. Finally the article draws a conclusion for the listing Corporation, theimplementation of internal control audit than non implementation of the listingCorporation internal control audit, financing cost is lower; the listing Corporation by theaudit of internal control audit operation has a high reputation, its financing cost.Finally, based on the analysis result, put forward to promote the implementation ofinternal control audit, internal control audit market, strengthen the norms of internalcontrol audit supervision policy meaning.