The Study Of The Relationship Between The Disclosure Of Internal Control Information And External Audit Quality

As one of the enterprise internal administration,internal control not only plays a significant role in enterprise management,but also is the important object of observation when the auditor is doing the annual reports audit.Since the internal control information coerciveness announced,it is easier to get its relevant information which is more abundant,standard and reliable.As one of the enterprise internal administration,internal control dose compensate and accelerate quite well with external audit supervision.In order to increase efficiency,whether auditor can make the audit decision better and grasp control risk to decrease the audit risk and improve the audit quality by getting customers' public internal control announcement for reference? To explore whether internal control has some relevance with audit quality and whether it has some impact on audit quality,firstly from the view of the contract economics,corporate governance and the audit theory respectively to analyze the necessity and rationality of internal control and external audit system exiting.Then from the view of both sides,mutual promotion and interaction theory principle is expounded between internal control and external audit.Thus the research assumption was put forward:(1)More degree of the internal information revealing,which is more index of the internal information revealing,more audit quality.(2)Revealing internal control defects show that internal control has low efficiency or lose efficiency which has a negative impact on audit quality.(3)Revealing degree of each factor of internal control has positive correlation with audit quality.(4)ST companies have bigger impact on internal control information to audit quality than non-ST companies.Based on the summary analysis of current audit quality target and considering the corporate and auditor,the dimension of the finance repeating and audit suggestion came up.The internal control information reveal index was adopted,designed and developed by Shenzhen Dibo Company,higher the index,more detailed the information reveal.Using EXCEL2016 and SPSS19.0 sample data and choosing 2013-2014 Shanghai & Shenzhen's A share non-finance sample data,it is found that internal control information reveal index has positive correlation with the audit quality,but for ST companies it is not obvious like non-ST companies,which shows ST companies' signal delivered by internal control information may covered by ST signal.Whether revealing internal control defects has obvious negative correlation with audit quality,which shows if company has internal control defects,no matter it is truly reveal,will cause negative influence: internal control five factors information reveal index will have positive correlation with audit quality.Among these,control activity has obvious correlation with internal supervision,showing each factor in internal control system has different impact on audit quality.Overall,studies indicate that internal control reveal has positive correlation with audit quality and also it has positive impact on audit quality.Thus studies suggest that supervision department needs to improve internal control system principle,standard internal control information reveal and ensure internal control information quality.Public companies pay more attention on internal control constriction and enhance internal control information reveal.Auditor will take the reveal information as reference,optimizing audit decision,improving audit efficiency and promotion audit quality.Compared with the achievement in the same research area,outstanding performance has been achieved in audit quality evaluation method,which takes auditor and customer into consideration,as the same time,it takes evaluation method's objectivity and comprehensiveness into consideration.However,this method is still an indirect evaluation method,which accuracy is weaker than direct evaluation method.Whether can exploring a direct evaluation method to evaluate audit quality needs future research and more attention subsequently.