The Impact Of Internal Control Effectiveness On Audit Pricing Of GEM Listed Companies

With the development of the research on internal control in recent years,Whether the effectiveness of internal control will affect the audit pricing has been the focus of some scholars,Because of the difference in the effectiveness of internal control in the existing research,people have different opinions on the relationship between the effectiveness of internal control and audit pricing.This paper provides empirical evidence for the study of the relationship between internal control and audit pricing,and promotes the audit pricing of listed companies and firms more scientific and reasonable.Based on the theoretical analysis and empirical research,this paper studies the relationship between the effectiveness of internal control and audit pricing.First of all,the paper summarizes the domestic and foreign relevant theories of the effectiveness of internal control and audit pricing.Then the goal oriented construction of internal control indicators of scientific and reasonable evaluation system based on the GEM listed companies as research samples,through the selection of selection and index of the data,and to audit pricing as explanatory variables,the effectiveness of internal control and corporate governance environment as explanatory variables and six control variables to construct multiple linear regression model.Through the principal component analysis,descriptive statistical analysis,correlation analysis and multiple linear regression analysis and other statistical methods to verify the two assumptions based on theoretical analysis,and the following conclusions are drawn:(1)there is a significant negative correlation between the effectiveness of internal control and audit pricing.(2)in the case of good corporate governance,the negative correlation between the effectiveness of internal control and audit pricing is more significant.(3)R & D capability is negatively correlated with audit pricing.As the gem represents a high risk and high-tech market,R & D capability is an important factor affecting the growth and development of the company,so this paper takes the R & D capability as an indicator of its control variables.The empirical results show that the stronger the R & D capability,the lower the audit fees.Based on the study of the relationship between the effectiveness of internal control and audit pricing,this paper enriches the existing research ideas.On the one hand,in the process of internal control audit pricing considering firm is conducive to better measure of audit risk,the audit resources into the weak link of greater risk,and to prevent the viciouscompetition of audit market behavior to ensure the normal profits of firms.On the other hand,consider the enterprise internal control in the negotiation process and firm audit pricing,to urge enterprises in accordance with the corresponding laws and regulations continue to improve the internal control system of its own,to promote the healthy development of enterprise.