The Research On The Influence Of Internal Controlaudit On The Auditor Changes

In2008and2010, the internal control basic standard and the supporting guidelines forenterprise internai control was promulgated inour country. In the internal control of listedcompanies in China to get better improvement, also make the internal control ofinformation and accounting information become the main source of investors makeinvestment decisions. Before the discretion of the academic circles is generally believedthat the accounting information quality often determines the investment decision-making iscorrect, the auditor’s audit and verification function is to prevent false accountinginformation is the last line of defense in the capital markets. When the auditor to identifyprovide false accounting information of listed companies and disclose the situation, facethe end of the dismissal. So whether the internal control information disclosure will affectthe auditor’s changes to the accounting information, more and more cause the attention ofthe academia. At present our country capital market at the same time also reflects theauditor change phenomenon more and more frequent, therefore, in this paper, combinedwith the actual situation of our country, the relationship between internal controlverification report disclosure and auditor change to do further research.This article selects ShanghaiandShenzhenStockExchang listed company to study therelationship betweendisclosure of internal control audit report and auditor changes, therelationship between mandatory disclosure of internal control audit report and auditorchange, the relationship between the disclosure of internal control audit report and auditorchange direction and the relationship between mandatory disclosure of internal controlaudit report and auditor change from four aspects. The study found that (1) the internalcontrol auditing report disclosure and mandatory disclosure of internal control audit reportand auditor changes significantly positive correlation, that the disclosure of internal controlaudit report will affect the auditor’s change, and the mandatory disclosure of internalcontrol report will also accelerate the auditor change frequency. Through regressionanalysis also showed that the influencing factors of auditor changes and the auditedenterprise financial difficulties, financial risk and the audit opinion last year.(2) thedisclosure of internal control audit report for auditor changes have positive correlation butnot significant, while equity checks and balances and there is significant positivecorrelation, the auditor change direction are the important factors that affect auditor change direction.(3) mandatory disclosure of internal control audit report can be seen from thedescriptive statistics will promote auditor to higher audit quality auditor changes, but stillneeds further validation. And according to the results of empirical research to summarizethe full text, think in the internal control information disclosure of the enforcement isnecessary in our country, it would help the enterprise improve its financial and internalcontrol, to the capital market investors to improve security, but also can make the auditmarket in China for the better development. According to the research conclusion from theinternal control information disclosure policy and regulation, the height of the company’sunderstanding of internal control information disclosure and improve the certified publicaccountant professional competence policy Suggestions are put forward. Finally pointedout existing limitations and the future research direction.