Study On The Influence Of The Defects Of Internal Control Information Disclosure To Audit Fees

The particularity of audit services determines the complexity of audit fees, which notonly represents the relationship between the interests of stakeholders, but also directly affectthe auditor’s independence and audit quality. Audit fees has always been a hot research fieldof audit, since the1980Smunic first proposed the audit pricing model, a empirical study onthe influencing factors of Audit charges boom, yet empirical studies about the publicdisclosure of listed Companies auditing fee in China started late in2001. In2002and SOXact, internal control has got unprecedented attention of the circles of theory and practice. In2008China promulgated the "basic norms of internal control", the disclosure of audit fees ofmany gradually, but the conclusion is not consistent, probably because of "basic norms" stage,listing Corporation self-evaluation report is not standardized and other factors. Three"Implementation Guidelines" promulgated in2010, marking China’s internal control systemof norms basically completed. The paper is based on the background of the system in ourcountry and more self assessment report for listing Corporation, to disclose the impact onaudit fees of internal control defect information.The paper use normative research, reviews defects of internal control, audit fees factorsand the impact on audit fees of internal control defect information, and analyzes the riskoriented audit theory, cost-benefit theory, risk premium theory and signal transmission theory,according to these puts forward the research hypothesis. Secondly, based on the2011-2012Alisted listing Corporation disclosure internal control self-evaluation reports as the researchsample, using stata11.2statistical software for data descriptive statistics and multivariateregression empirical test. The results of this study show that, the enterprise internal controldisclosure information of defect is positively related to audit fees; disclose significant orimportant effect of defects relative to general defects on audit charge more, but the result isnot significant; if the enterprise internal control deficiencies were corrected and the correction,the CPA in audit fees when considering responded positively.The paper from the internal control information disclosure of defects, to discuss theinfluence factors of audit pricing, enrich the research on the influence factors of audit pricingon the one hand, on the other hand, enriched the defects of internal control the marketreaction to the literature from the perspective of CPA, promote the enterprises to improve theconstruction of internal control has a positive effect. Because of the short time and my limitedability, there are still some limitations: No subdivision of defects of internal controlinformation, and control variables, which may to some extent impact on the empirical results.