Internal Control Audit、Material Internal Control Weakness And Audit Fees

Internal control audit report disclosure regime started in the year2006of a voluntaryaudit of internal control phase, after year2008, the "basic standard" release and graduallydeveloped into a voluntary internal control attestation phase, after year2010, three"Implementation Guidelines" published in2011became voluntary and mandatory internalcontrol attestation of internal control phase of the pilot phase on August14,2012, theMinistry of Finance, the Commission jointly issued the "Listed Companies (Main Board ofthe class) to perform batch classification system of internal control standards," thenotification file, so far, China formally launched a mandatory disclosure of internal controlaudit report of the boom. System in the implementation of these regulations backdrop ofthis paper to determine the measure of the internal control audit enforces independent auditmarket problems caused by the market reaction to the theme of the study.Audit fees are independent accounting firm audit market with two-way choice auditedentity jointly agreed outcomes, reflects the basic conditions under certain environmentalconditions to run the audit market, changes in audit fees in certain situations it may revealimportant factors particularly affected. Ministry of Finance, in2012the Commissionnotified the independent audit of both the supply and demand market, accounting firms andlisted companies have had some impact. In this paper, in order to measure the impact ofinternal control audit requirements----mandatory disclosure to the market reaction to thetheme, with the analysis of audit fees and the change will force changes in disclosure andaudit fees and voluntary disclosure under the conditions analyzed, while internal controlaudit material weaknesses in internal control audit fees incurred influence extendedanalysis reveals that the government introduced regulations caused some market reaction.Research has a strong policy timeliness, but also the internal audit system of control andconstantly improve the further development of audit and internal control theory plays arole.Around these themes, firstly at home and abroad on the audit of internal control andaudit fees were a series of related literature classify and organize, and control of theinternal audit process of institutional change that perspective different from publishing asummary of the main points in the internal control specific contents of the audit rules andnorms, as well as the use of market regulation economics theory, signaling theory andagency theory on the relationship between internal control disclosure of audit reports andaudit fees were analyzed theoretical aspects to2012"category in batches." mandatorydisclosure of internal control audit report of this policy as the main line, along the "system of internal control audit background "-" theory analysis "-" an EmpiricalAnalysis "-" conclusion "-" Policy Recommendations " this idea to analyze the deep,Shanghai and Shenzhen mandatory disclosure of internal control audit reports757state-controlled listed companies and their corresponding in2011757listed companies andtheir audit fee changes and differences occur, using SPSS19.0statistical analysis software for mandatory disclosure of internal control audit report disclosure of significantdeficiencies and internal control audit fees would affect whether and to what extent theimpact of the empirical analysis found that mandatory disclosure of listed companieshigher audit fees paid internal control audit report, the disclosure of internal controlmaterial weaknesses in higher audit fees. Meanwhile, the paper analyzes the mandatorydisclosure of the group and the group of non-mandatory disclosure, disclosure ofundisclosed group and independent sample groups, further t test also verified the aboveconclusion is reasonable.Based on the above research conclusion, this article from the regulatory, accountingfirms, the main body of the listed company’s three different angles, respectively, putsforward the relevant policy recommendations, to further standardize the disclosure ofinternal control audit report provides a practical and feasible Suggestions.