The Impact Of Integrated Audit Of Audit Cost

With the implementation of SOX404, the capital market in the United States opened the internal control auditera.China is also affected by the changes in the audit globally and plays a leading and exploratoryrole in reform.In2014,internal control audit has come into the enforcement stage. An Audit of Internal Control over Financial Reporting that is Integrated with an Audit of Financial Statements (integratedaudit)and its influence is a new hot topic in audit research field. The development of an integrated audit is earlier in foreign countries, while it is later in China. In 2010, the concept of integrated auditissued at internal control practices guidelines,was formally proposedby the Ministry of Finance and other five ministries.As the internal control audit from the voluntary period developed into forced period, the era of integrated audit is coming. At present, the study havediscussed the specific patterns of integrated audit, the feasibility and necessity of the implementation and the other theoretical discussion on the audit cost. But in the initial stages of the integrated audit, the disclosure of audit fee about financial statements and internal control are not standardized, so there is little empirical data related to the aspects of impact on audit cost.And the impact about the specific implementation of the integrated audit on audit costs is a quite notable topic.On this background, Using the data of the Shanghai and Shenzhen stock markets between 2012 and 2014, and the empirical methods, the paper exam the effects of the integrated audit on audit cost. We find that firstly, that audit fees decrease upon the adoption of integrated audit. Secondly, compared with non-top 10 CPA, Top 10 CPA canmake the degree of Integrated audit deeper, and result in the audit cost fewer. Thirdly, the deeper the integrated audit, the fewer the audit cost, not only the financial audit cost,but also the total cost.Findings of this study support that, In the current market environment of our country, integrated audit have a significant negative impact on the audit cost and easing the negative externalitiesof the implementation of the internal control audit. This paper shows that:the integrated audit make the integration of audit resources effectively and improve the efficiency of the audit, so it can reduce the cost of the audit. This study enriches the existing integrated audit documentation, provides a more objective evidence to evaluate the effect of the implementation of integrated audit.