Research On The Correlation Between Internal Control Quality And Audit Pricing

The auditing pricing is not only the connecting link between certificated public accountants and their customers but also an agreement based on the auditing service. On the one hand, the fair and reasonable auditing price can promote the healthy development of certificated public accountants; on the other hand, it can ensure the high quality auditing reports the certificated public accountants provide. With the relevant policies and regulations enacting out, the role of the internal control becomes more and more important. In theory, sufficient and reliable internal control can make certificated accountants get efficient information, reduce the auditing procedures and reduce the auditing cost. But if the actual conditions are consistent with theoretical analysis need to make an conclusion though the empirical analysis. So the article has the important meaning both in theory and in practice.The article makes the empirical research combing the theory analysis to investigate the relationship between the quality of the internal control and auditing pricing and to discuss the impact that internal control quality.Firstly, we make an overview of the analysis background and significance and make an introduction of the related theory of the internal control and auditing pricing. Secondly, we analysis the correlation between the internal control quality and auditing pricing on two levels. In the first level, we analysis the correlation between the internal control quality and auditing pricing; in the second level, we analysis the correlation between the elements of the internal control and auditing pricing. Then make the empirical design on the basis of building the evaluating index and further the empirical model. Then apply the SPSS17.0 to conduct descriptive statistical analysis, correlation analysis and regression analysis on the basis of the 446 qualified list companies, analysis the correlation between the internal control quality and the auditing quality deeply. From the conclusion of the empirical analysis, we can learn that there is no significant positive correlation between the general defects of the internal control and the auditing pricing, but the positive correlation between serious defects of the internal control and the auditing pricing. Further, in the constituent elements of the internal control, the risk assessment and the internal supervision can influence the auditing pricing closely. In the end, we put forward the relevant countermeasures on both improving the internal control quality and strengthening the role that the certificated public accountants plays in the auditing pricing.