Research Into Relationship Between Disclosure Of Internal Control Defects And Auditor Changes

Internal controls and external audits have a very close relationship between production and evolution,and good internal controls have a positive effect on the development of audit work,both of which effectively enhance organizational efficiency from within and outside the enterprise.According to the current research situation,the study of the changes of auditors focused on the previous audit opinion,the size of the trial company,the main business changes and additional rights and other reasons,the internal control of these new hot spots are few scholars Disclosure of internal control deficiencies is linked to changes in auditors.According to the current research results,the internal control information disclosure conveys the corporate governance and operation status of the listed companies to the stakeholders,and reflects the quality of the CPA audit work and its business level,thereby affecting the auditor's audit risk,bringing the possibility of auditors to change.This paper will elaborate on this link,for future scholars to provide a reference.Based on the integration,summarization and discussion of the existing research results,such as internal control and the change of auditors and their correlations at home and abroad,this paper explores the specific relationship between them by relying on the related theoretical aspects such as principal-agent theory Happening.By using Probit regression test,the data of China A-share listed companies from 2012 to 2015 were used to analyze the relationship between the disclosure of internal control deficiencies and the change of auditors in the current political and economic situation.The results of empirical research show that there is a significant positive correlation between the disclosure of internal control defects and the change of auditors,and the continuous disclosure of internal control defects has a significant positive correlation with the auditor's change,and the greater the seriousness of internal control deficiencies,In the important defects and general defects,more likely to lead to auditors change.Based on the results of empirical research,this paper puts forward some policy suggestions on the internal control information disclosure and auditor change from the three aspects of regulatory authorities,listed companies and external auditing,and expounds the limitations of this paper and points out the future research direction.