The Effect Of The Internal Audit Characteristics On The Accounting Information Quality

Internal audit is the control mechanism in the fiduciary responsibility system, playing animportant role to supervise and evaluate the internal control, as well as ensure the quality ofaccounting information of listed companies.This paper on the basis of literature review and theoretical analysis, constructs the indexsystem to describe the internal audit characteristics, and selects the data of Shenzhen StockExchange main board of listed companies from2009to2012, analyzing the current situationand development trend of internal audit in China’s listed companies; and with the help ofperformance-adjusted Jones model and Shenzhen stock exchange accounting informationdisclosure examination and assessment result, empirical analyzing the effect of internal auditcharacteristics on the quality of accounting information.Firstly, this paper combined with the basic theory of fiduciary responsibilities, corporategovernance and internal control, analyzes the effect of internal audit characteristics on thequality of accounting information, then proposed hypotheses Furthermore, based on literaturereview and theoretical analysis, constructs the index system of internal audit characteristicsfrom the four aspects of internal audit organization, internal audit size, internal audit systemand internal audit activity, and use the performance-adjusted Jones model and Shenzhenstock exchange accounting information disclosure examination and assessment result toindirect measure the quality of accounting information. Finally, this paper selects the data ofShenzhen stock exchange main board listed companies from2009to2012descriptiveanalyzing of the internal audit characteristics; and uses the five indexes of internal auditcharacteristics and performance-adjusted Jones model regression analyzing the panel data; toensure the robust of the results, this paper uses Shenzhen stock exchange accountinginformation disclosure examination and assessment results as the replacement for the index ofthe quality of accounting information and adds the proportion of the independent directorsinto the regression model respectively, the regression results are basically the same.Through descriptive analysis, found that the independence of the internal auditorganization in the listed companies gradually strengthens; internal audit system constructionand personnel gradually perfected, profession gradually promoted as the same; and theinternal audit activity gradually increased. The empirical results show that, the internal auditreport has a significant positive effect on the quality of accounting information, the internalaudit activity is helpful to improve the quality of accounting information of listed companies;in addition, the results also show that internal audit report has a stronger effect on positivemaneuvering accrual, indicating that internal audit activity has a more significant role in inhibiting the artificial increase profits of listed companies.This paper integrate use of the literature research method, qualitative analysis methodand quantitative analysis method, analyzing the current situation and development trend ofinternal audit in China’s listed companies, and empirical analyzing the effect of internal auditcharacteristics on accounting information quality, revealing the current running results ofinternal audit in listed companies.Research conclusions of this paper provide empirical evidence for the internal auditactivity can improve the quality of accounting information of listed company, provideguidelines for listing companies to improve the internal audit organization structure and modeof operation; also provide a useful reference for the relevant departments to promote andimprove the internal audit standards, ensure the quality of accounting information, andstrengthen the corporate governance.