The Influence Of Internal Control Defects And Its Rectification On Internal Control Audit Fees From Perspective Of Integrated Audit

Modern internal control audit began in the early twenty-first Century,the United States Congress in July 2002 passed the Sarbanes act,required the strengthening of internal control and stressed the importance of independent audit.Then in 2007 promulgated the "financial report audit and internal audit",which emphasized the internal audit standards,and put forward the concept of integrated audit.At this point,internal control and internal control audit has gradually became the research focus of scholars.In order to regulate the internal control of Listed Companies in China,China's five ministries issued "basic norms of internal control" in 2008,and promulgated the "supporting guidelines of internal control regulations" in 2010,domestic and foreign cross listed company in January 1,2011 began the implementation of audit of internal control,Shanghai and Shenzhen listed companies in January 1,2012,and will expand the scope to the state-owned holding company listed on the main board,and encouraged non listed medium-sized enterprises to implement the regulation ahead of schedule.to 2014 China's listed companies should fully implement the internal control audit.The number of the listed companies that disclosed the internal control audit fees increased from 2010 to 2015,based on the cost compensation theory,insurance theory,signal transmission theory,the risk premium theory,this paper selects A-share listed companies in 2011-2015 that disclosed the internal control audit fees as samples,through descriptive statistics,correlation analysis and regression analysis to study the influence of internal control defects and its rectification on internal control audit fees from perspective of integrated audit.The main research contents are as follows: first,the relationship between the existence of internal control deficiencies and the internal control audit fees in the same year and lag period;second,the relationship between the severity of the internal control defects and internal control audit fees in the same year and lag period;third,the relationship between the rectification of internal control defects and internal control audit fees in the same year and the lag period;fourth,integration whether influence the correlation between the severity of internal control defects and internal control audit fees.Through the empirical analysis this paper found that the internal control audit fees are related to the internal control deficiencies,but not significant;the severity of internal control defects and internal control audit fees in the same year and lag period have significant positive correlation,and the correlation with the lag period is more significant;rectification of internal control defects does not affect internal control audit fees in the same year,but influence the audit fees of internal control in lag period;compared to non integrated audit,integrated audit can weaken the relationship between internal control defects and internal control audit fees and enhance the relationship between rectification of internal control defects and internal control audit feesThe purpose of this study is to strengthen the understanding of internal control audit,supervise the corporate to improve governance structure,establish a sound internal control system;to offer advice on internal control audit pricing and how to reduce internal control audit fee.So according to the conclusion of the study,this paper put forward the corresponding policy recommendations from the government regulators,listed companies,accounting firms of the three party,the government supervision departments should standardize and improve the information disclosure of internal control,encourage listed companies to disclosure internal control audit fees,promote the implementation of the integrated audit;the listed company should establish a sound internal control system and rectification mechanism of internal control defects;Accounting firm determine the reasonable internal control audit fees on the audit risk.