The Effect Of Internal Control Quality On Auditing Report Lag

Auditing report lag is an important indicator to the efficiency of the audit. It is directly related to the timeliness of annual reports disclosure. Internal control quality is an important factor affecting the auditing report lag. High-quality internal control can effectively suppress the influence of the auditing report lag. Therefore, it is of great significance to research the relationship between Internal control quality and auditing report lag for promoting the timely disclosure of corporate financial reporting. This paper study the effects of Internal control quality and auditing report lag by using data of listed companies on the stock market of Shanghai and Shenzhen during 2013 to 2014 as example.This paper is divided into six chapters. The first chapter is an introduction; The second chapter is literature review,it summarize the research results of auditing report lag and Internal control quality at home and abroad; third chapter is theoretical analysis and research hypothesis, in this section, it put forward the research hypothesis based on the analysis of the related theory of auditing report lag and Internal control quality; the fourth chapter describes the study design, it includes the principle of date filtering, sample data sources and research model; the fifth chapter of this paper, we make an empirical test on the underlying assumptions. The sixth chapter is the conclusion of this article, it summed up the direction of the full text of the conclusions, limitations and future further research.The main conclusions of this article should be included:1. Theoretical analysis shows that an effective internal control could inhibit the effect of Auditing report lag. High-quality internal control can reduce the difficulty of the audit work and the number of audit evidence. It can speed up the audit process, shortening the auditing report lag Thus, the higher the quality of internal control, shorter auditing report lag.2. Positive test results shows:(1) Deficiencies in internal control mean that companies have a lower quality of internal control. The companies who exist internal control deficiencies have a longer auditing report lag.(2) The degree of internal control deficiencies represents different quality of internal control. As compared to the presence of defects in the general business, business is seriously flawed auditing report lag longer.(3) It is easy to be punished when the enterprises have a lower quality of internal control. the CPA have to take more time in the audit work, therefore, comparing with the company who have been punished, not punished companies own a shorter auditing report lag.(4) Internal control audit opinion is a fair evaluation of internal control quality. Nonstandard views mean poor quality of internal control. If the company is issued the nonstandard audit opinion, it could have a longer auditing report lag.