The Impact Of Internal Control Audit On Auditing Quality Of Financial Statements

With the continuous development of China's capital market,the quality of accounting information attracted more and more attention by investors and regulators.The quality of accounting information provided by listed companies directly affects the stability of China's capital market,which is of great significance to the development of China's economy.However,in March 2017,the SFC issued a series of cases of inspection and punishment,including Xian Yan and Huiqiu Technology suspected information disclosure violations of the case of a total of nearly 3.48 billion yuan.This not only shows the SFC to maintain China's securities and futures market order and the protection of investors' s determination,but also shows that there are serious problems of China's accounting information quality.The financial audit report provided by intermediary firm is a guarantee of the quality of the company's financial information.If there are serious problems in the quality of the audit of the financial statements,it will seriously affect the order of the capital market in China and seriously damage the interests of the investors.However,the current audit quality is not optimistic.There are three cases of accounting firms of the announced 20 major inspection and punishment cases by Commission in 2016.It indicates that China's current financial statements audit quality has the same serious problems.In the current risk-oriented audit model,the understanding and testing of internal control are paid more attention and it has an important impact on the quality of the audit.From the beginning of 2008,china has introduced the basic norms of internal control and application guidelines,and began to gradually require the listed companies to implement mandatory disclosure of internal control system in 2012.So,can internal audit audit improve audit quality? On the one hand,we choose a same accounting firm to do internal control audit and financial statements audit.On the other hand,we select two different accounting firms to do internal control audit and financial statements audit.Compared these two methods,which is the higher audit quality?In view of the above problems,A-share listed companies are selected as samples.We use earnings quality instead of measuring the quality of financial statements audit,and select the latest data for empirical research.It is found that the internal audit can improve the audit quality of the financial statements,and it is also found that the individual audit is more effective than the integrated audit.This is also an important innovation of this paper.And on this basis,we propose small board,GEM,the new three boards can as soon as possible implement internal control audit mandatory disclosure system,improve the internal control system and improve the quality of financial statements information.At the same time,it is proposed to promote the separate audit method to return to the original purpose of the internal control audit implementation,to better play the role of internal control audit,improve the professional competence of auditors,better play the functions of internal control audit and improve the audit quality of financial statements.