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Political Relation?Internal Control Quality And Audit Fee

Posted on:2018-02-07Degree:MasterType:Thesis
Country:ChinaCandidate:Y Y LiFull Text:PDF
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Audit fee is mainly consist of the audit fee,the risk premium and the normal profits of the public accounting firm.Internal control is a risk prevention for enterprises,its effective practice ensures the authenticity of the company's financial report,reduces the risk of material misstatement of the auditor and the auditor's investment and workload,and thus it affects the audit fees.Political association of actual control is one of the main characteristics of the private listed companies,will also affect the audit fee.In order to study the above problems.It reaches the private listed companies from 2010 to 2015 as the research object,and empirically how the political association of private listed companies and the internal control quality influence the audit fees.Analyzing the relation,combing out the relations among the three with theoretical basis,the hypothesis is verified by using the method of empirical analysis.Through the study,it found that:1,The internal control quality and audit fees have significantly negative correlation,the better the quality of internal control,the auditor's audit risk is smaller,the lower the audit fee.2,Compared with no political association of private listed company,the actual control people's political association will weaken the negative correlation between internal control quality and audit fees.Research suggests that private listed companies must strengthen the construction of internal control and implementation,improve the quality of internal control,reduce the audit cost.Reducing the political association of private listed companies,fundamentally improving the production and operation of enterprises and improving business performance make the enterprise for long-term survival,create more value for the enterprise and society.The contribution of this paper lies in:the present studies focus on the relationship between internal control and audit fees of listed companies.This paper adopted the DIBO internal control index as a substitution variables,the data of research is more accurate.In addition,this paper adds the political association as the adjustment variables into the field of auditing,makes the conclusion that the political association will influence audit fees internal control quality,providing the theoretical support relationship between government and enterprises for specification.
Keywords/Search Tags:political relation, internal control, audit fee
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