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

With the emergence of financial scandals such as Enron and WorldCom,internal control audits have become increasingly important.Internal control audit can not only urge the company to develop better,but also provide guarantee for building an orderly market environment.According to China's regulations,starting from 2014,all listed companies on the A-share main board must implement internal control audits and disclose internal control audit reports.Since then,internal control auditing has become a focus area in academic research and practice.Compared with the audit of financial statements,China's current regulations on internal control auditing are still not perfect,resulting in the lack of uniform standards for companies and firms when setting audit fees.The cost itself affects audit quality to a certain extent.When the internal control audit and the financial statements audit are submitted to the same firm,whether the internal control audit fees will have a certain impact on the audit quality of the financial statements.This paper stands in the perspective of implementing integrated auditing companies,drawing on the research of a large number of domestic and foreign scholars,using audit-related theories as the research basis,using all companies listed on the A-share main board to implement integrated auditing as samples,based on audit pricing theory and knowledge spillover theory.The empirical analysis method replaces audit independence with audit opinions.As a measure of the audit quality of financial statements,auditable profitability can be used as a measure of how auditing quality of internal control affects audit quality.The research results show that,in the integration of audit companies,the internal control audit fees will not affect audit independence but will affect manageability accruals,thereby improving the audit quality,and the size of the firm will not affect the relationship of the internal control audit fees and audit quality.Finally,it makes policy recommendations:(1)standardize and develop internal control audits;(2)improve and standardize related systems so as to make internal control audit fees more transparent;(3)establish and improve the audit market competition mechanism and conduct preventive intervention on costs.The innovation of this article mainly lies in the background of integrating auditing as an auditing method.It analyzes whether the relationship between internal control auditing costs and auditing quality of financial statements is relevant and how relevant,supplements the data gap in this field,and studies from a new perspective.The impact of audit fees on audit quality will hopefully provide new ideas for understanding the internal control audit system.For the firm and government departments have reference value.