Study On The Influence Of Internal Control Defects On Audit Fees

After the PROmulgation of the Sarbanes-Oxley Act in the United States,many foreign scholars have studied the internal control of the company,and the relationship between internal control and its relationship with audit fees has also been paid attention On the basis of previous studies,this paper uses theoretical and empirical methods to explore the correlation between the internal control deficiencies and audit fees of listed companies.The purpose and content of this study are as follows:The first chapter elaborates the research background and significance,the purpose and the content of the research,the research method and the innovation.The second chapter summarizes the relationship between the internal control deficiencies and the classification,the relationship between the internal control defects and the audit fees,and how the internal control defects affect the audit fees.In the third chapter,the audit pricing model is introduced,and the theoretical analysis is made from the two aspects of audit cost and risk premium.The relationship between internal control defects and audit fees is demonstrated from the theoretical aspects.Chapter 4:Conduct empirical research.In this paper,the listed companies have disclosed at least one internal control defect as an independent variable and regression analysis.The research shows that the internal control flaws of the listed companies are significantly positively correlated with the audit fees.This paper divides the internal control defects into three categories according to the classification standard of Lu Jun and Chen Hanwen(2016):the internal control defects of the accident dispute class,the internal control defects of the illegal punishment class,the internal control defects of the self evaluation class,Control the relationship between the audit charge and the annual audit fees.The results show that the internal control defects of the penalties and the internal control deficiencies of the self-evaluation category are related to the audit fees of the current year,and the internal control defects of the accident dispute class are not related to the audit fees of the year.The internal control defects of the irregularities will lead to the annual audit fees And the self-evaluation of internal control deficiencies has nothing to do with the subsequent annual audit fees.In the fifth chapter,the conclusion of the research is clarified,and the conclusion is drawn from the conclusion of this paperFor the first time,according to the classification standard of Lu Jun and Chen Hanwen(2016),it is a new angle to classify the internal control defects and study the relationship between the audit fees and the annual audit fees.