Research On Factors Influencing Audit Charges For Internal Control Of Listed Companies

With the gradual deepening of the internal control system,China requires listed companies to implement internal control audit from January 1,2011.Internal control audit fees directly affect the quality of the audit,which is a challenge for accounting firms and regulators.The rationality of internal control audit fees is critical to the sound development of the audit market.And it is a worthy of study.Listed Companies alone disclose audit fees of internal control,which provides a rare opportunity for the study of internal control audit fees.The paper studies the influencing factors of internal control audit fees,not only for accounting firms to set standards of internal control audit fees,but also help regulators to further perfect mechanism of internal control audit fees and strengthen the supervision of the audit market.This paper is based on principal-agent theory,cost-benefit principles,insurance theory,and high-level echelon theory.The paper chooses the companies that disclose the internal control audit fees separately from all the mainboard A-shares listed companies in 2014-2016 as a sample.From the characteristics of the audited companies,the characteristics of the accounting firms and integration of the audit,the paper studies the impact of the three aspects on internal control audit fees.Then it propose hypothesis: the higher the size of the company,the higher the internal control audit fees;the higher the complexity of the company's business,the higher the internal control audit fees;the higher the number of executives with audit backgrounds,the lower the internal control audit fees and so on.The degree of influence of influencing factors on the internal control audit fees is verified by descriptive statistics,correlation analysis and multiple regression analysis.In terms of the characteristics of the audit companies,the result shows that the higher the size of the company,the higher the internal control audit fees;the higher the complexity of the company's business,the higher the internal control audit fees;the higher the number of executives with audit backgrounds,the lower the internal control audit fees;the more concentrated equity,the higher the internal control audit fees.In terms of the characteristics of the accounting firms,the higher the internal control audit fees of accounting firms with industry expertise,the higher the reputation of the accounting firms,the higher fees for internal control audits.The implementation of the integrated audit will significantly reduce the internal control audit feesOn the basis of comprehensively analyzing the influencing factors of the internal control audit fees,the paper puts forward the following suggestions for the accounting firms and the regulators: consider the characteristics of the audited companies,we can reasonably determine the internal control audit fees;the accounting firms strengthen the training and improve the professional competence of the auditors;the accounting firms should build the reputation of the accountant affairs brand;regulators should strengthen the external supervision and promote the sound development of the audit market.