The Empirical Study On The Correlation Between Internal Audit Quality And External Audit Charges

Since the CSRC requires all listed companies to report the amount of audit fees in the important matters of the annual report,whether the audit fees of the listed companies can reasonably reflect the quality of the audit has aroused wide attention from domestic scholars.Therefore,it is of great significance to study the correlation between the external audit fees of listed companies and the quality of internal audit.In view of this,this paper takes the correlation between internal audit quality and external audit cost as the research object.Firstly,it expounds the relevant background,significance,current situation of domestic and foreign research and summarizes the theoretical basis of this research.Secondly,this study chooses the listed companies of Shenzhen Stock Market in China's securities market 2013?2015 as the research sample and some of the listed companies.Finally,151 listed companies are selected as valid samples,and the variables are selected and explained.Alternative indicators and external audit fees,and put forward six assumptions;Thirdly,by using Prawitt's(2011)research model of external audit fees,this paper makes an empirical analysis of the correlation between external audit and internal audit.Based on the analysis of descriptive statistics and variable correlation,multiple regression analysis is adopted.The results of this study show that the quality of internal audit is negatively correlated with the external audit fee,that is,the competency of internal auditors is stronger,and the internal audit institutions' The higher the size of the audit committee,the less the audit fee,the more the number of audit committee meetings,the lower the cost of unintended external audit,the higher the quality of internal audit,the lower the audit fee.Finally,the author puts forward some countermeasures and suggestions for the empirical research results,and points out the shortcomings of the research and the future research direction.The results of this research enrich and promote the relevant research conclusions in relevant fields,and provide empirical evidence for the internal audit system of small and medium-sized listed companies' internal audit construction and supervision departments to promote the internal audit system.