Empirical Research On The Influence Of Internal Control Deficiencies And Its Rectification On Audit Fees

"The listed company internal control guidelines" and "basic norms of internal control" promulgated and implemented,marking the Chinese enterprise internal control standard system was basically completed,at the same time,the CPA will focus on internal control of enterprises in the annual audit,not only focus on financial data the financial report,the user will also begin transfer to internal control.In this context,the internal control is particularly important for CPA auditing.The content of the internal control in many aspects,this paper selects internal control deficiencies and rectification,aims to study the impact on audit fees for the construction of internal control deficiencies,and put forward reasonable suggestions of enterprise internal control,so as to improve the internal quality control of enterprises,reduce the audit cost to a certain extent.At the same time,to provide reasonable suggestions for the internal control information disclosure of government regulatory authorities,but also for the CPA annual audit implementation of the internal control of enterprise process reference as a test audit substantive basis,and accept the audit entrustment of audit pricing to provide reasonable suggestions.This paper mainly adopts the research method.Firstly,consulting the domestic and foreign research about the internal control deficiencies research literature influence and control of defects rectification impact on audit fees of internal audit fees.found by reading foreign research more about this,because China was promulgated in 2012 the basic norms of internal control,so the study is less,the existing research shows that the effects of internal control deficiencies on audit fees is positive,the rectification is negative on audit fees.Based on the previous scholars’ research,the model,selection variables and hypotheses are put forward.Secondly,according to the internal control self-assessment report disclosed by the listed company,collect the Shenzhen 2013-2015 years of internal control,internal control deficiencies data,the rectification data,the audit fee data.Finally,through descriptive statistics and independent samples T test of this hypothesis,using correlation analysis and multiple regression analysis confirmed the hypothesis,get the conclusion:(1)Internal control deficiencies and audit fees of the listed companies is positively related to listed companies(2)Major important deficiencies of internal control and audit fees arepositively related.(3)Rectification of internal control deficiencies is negatively related to audit fees.Finally,give suggestions to government supervision departments,accounting firms and company.