Research On The Influence Of The Effectiveness Of Internal Control On Audit Quality Of Financial Report

There are many factors that affect the audit quality, including public accounting firms,company under auditing, the social environment, etc. Effective internal control can reduce themisstatement of accounting information, and can restrain the management of accountinginformation’s operation, so as to improve the quality of financial reporting. In the modernrisk-oriented audit mode, as the important issues considered in audit of certified publicaccountants, the effectiveness of internal control has important influence on audit judgment,auditing evidence collecting, etc. Then it will affect the quality of audit.This paper is going to study the impact of the internal control quality on the audit qualityby using the evaluation of the effectiveness of internal control as a breakthrough. On thebasis of the research results of scholars at home and abroad for reference, build internalcontrol goal oriented internal control effectiveness evaluation system, with reference to thecomprehensive score of internal control effectiveness evaluation of the effectiveness ofinternal control standards; the modified model of DD is controllable accrued, as substitutionvariables of audit quality. Build the internal control effectiveness as the independent variable,the audit quality as the dependent variable regression model, firm size, does the companylosses, company size, complexity, etc. as control variables. Put the Shanghai and Shenzhentwo city data of a-share listed companies from2011to2013as sample researching problemsin this paper.In this paper, the results show that the internal control the higher the more effective auditquality, consistent with the hypothesis of this article. Certified public accountants audit canmake full use of effective internal control information, improve the quality of audit. Inaddition, this article also concluded that firm size, whether the company has significantinfluence on audit quality, complexity of business, operating leverage, and corporategovernance environment no significant impact on audit quality.Finally, according to the results of the study, the paper put forward relevantcountermeasures and Suggestions, from the listed companies, external regulators andaccounting firm three aspects. To constantly improve the level of internal control effectiveness, we should perfect the internal control self-evaluation system of listedcompanies, improve corporate governance environment, at the same time improve theunderstanding of internal control evaluation, enhance the scientific nature of the work, andset up internal control risk early warning system. Certified public accountants should also paymore attention to the effect of internal control in the audit, using the effective internal control,to improve the quality of financial statements audit.