Study On The Association Between The Internal Control Quality And Auditing Fees

The audit fees are disclosed as important items of the financial report for its nature, which the smart investors can get useful information from. Therefore, study on the formation mechanism of the audit fees is very necessary. Many factors affect the audit fees, while the research on the connection between the quality of the enterprise internal control and audit fees is novel and unique, and also be perfectly logical and reasonable. Because the internal control is an important part of corporate governance, the implementation of internal control can help enterprises to improve management efficiency and effect, can generate great influence on the time, scope, nature of the audit program, and increase or reduce the audit fee levels. The definition of the quality of internal control must be clear, accurate, which will be strictly divided into two parts, the running quality of internal control and internal control information disclosure quality in this paper, which transfer the general and vague notion into a specific one. In this way, it can be not only convenient for academic research, but also allows companies to have a definite object in view in the measure of internal control effect. The refinement of the internal control quality, makes the evaluation of the internal control quality explicit. A goal-oriented method will be constructed. The objectivity of the internal control requirements of the operating results helps its working in a unique way.This paper uses deductive and inductive research methods, the literature review on internal control and audit fees and the relationship of the two. Respectively discusses the running quality of internal control and audit fees and information disclosure of internal control quality and audit fees, the organic integration of the two parts to verify the most basic hypothesis, namely the quality of internal control and audit fee significantly negative correlation, which combining standardized research and empirical research, the old method and new method, the reasoning part of reason, the empirical part of rigorous scientific.No matter the research perspective and methods or the structure are innovating. And the paper has theoretical significance and practice value. In one way, combing a lot of classical economics and financial management principles. In the other way, it is practical. Firstly, it enhance the internal control the significance of education, from internal control heuristic system established, innovation of the methods of the evaluation.Then, let audit institutions view audit risk more importantly than audit cost, and the audit fee mechanism will be scientific and reasonable. At last, it improves the supervision department efficiency. To make a long story short, the paper has a certain scientific value.