Risk Disclosure Extremely Inverse Effect And The Internal Control Audit Fees Decision

With the continuous improvement of our enterprise internal control standard system, the Enterprise Internal Control Audit Guidelines, Internal Control Evaluation Guidelines and Enterprise Internal Control Audit Guidelinesand the introduction of a series of legal norms,from 2012 the Shanghai Stock Exchange and Shenzhen Stock Exchange began mandatory implementation of internal control audit listed companies, therefore, the pricing of the internal control audit is a growing concern of theory and practice. Audit fees internal control factors research scholars has become a particular concern, most domestic existing research findings draw on the financial statement audit fees Audit factors that may affect internal control into the audit pricing model for data analysis and empirical research, but no in-depth study of certain factors which influence the internal control audit pricing. This article will disclose the internal control risk factors and internal control audit fees for a deeper relationship, attempting through theoretical analysis and empirical testing to explore the correlation between them.Firstly, the use of standardized research methods, the research results of previous scholars were literature review, mainly from the financial statement audit fees factor, integrated audit fees and audit fees factors influencing factors of three aspects of internal control; then, in principle the analysis of internal control risks associated with internal control audit fees, according to Simunic(1980) pricing model audit, the audit is expected to vary depending on risk, loss-sharing mechanism, auditors production functions and firm characteristics and other factors, This article will focus on the expected risk factors and audit fees from audit risk, the risk of disclosure of internal control, "extremely inverse effect" and audit risk, internal control risk disclosure and audit fees of the three major aspects, based on cost-benefit theory insurance theory and signaling theory elaborated internal disclosure controls and internal control risk Disclosure theoretical relationship between audit fees.To demonstrate the hypothesis of this paper, we collect the relevant data of Shanghai and Shenzhen listed companies to disclose the 2013 and 2014 as samples, drawing Simunic audit pricing model, establish a research model in this paper. The model descriptive statistical analysis, correlation analysis, multiple regression analysis to test the hypothesis is correct.Finally, on the basis of theory and data,the following conclusions: As the Internal Control Evaluation Guidelines, Enterprise Internal Control Audit Guidelines and issued a series of documents on the 21 st and so on laws and regulations of internal control,so that our internal control audit market there is a " extremely inverse effect ", that is, in the enterprise internal control audit process, risk-based audit model at risk assessment stage, the CPA can obtain information about the size of internal control risk. It is because of this effect, when the internal control of listed companies to disclose the existence of significant or important defects, ineffective internal control and financial reporting standard audit report, despite the listed companies to disclose internal control risk is high, but the CPA audit fee cost comparison is reduced, disclosure of internal risk control and internal control audit fees is a significant negative correlation.