Empirical Study On The Relationship Between Performance Forecast Accuracy?Internal Control Quality And Audit Fees

With the continuous improvement of China's performance forecast disclosure system,more and more capital market participants began to pay attention to the performance forecast issued by listed company.As an important participant in the market,whether the auditor will use the accuracy of information transmitted by the performance forecast as an indicator to evaluate the audit risk and determine the audit fee has not attracted widespread attention from scholars.The difference in accuracy of listed company performance forecasts means different audit risk.Audit work is based on risk assessment.In the face of high-risk company,the auditor will expand the investment of audit resources and increase audit fees.The thesis studies the effect of prior performance forecast accuracy issued by listed company on the current audit fees from the perspective of auditor.The thesis uses a combination of normative research and empirical research to study the effect of prior performance forecast accuracy on current audit fees.In the normative research,firstly,by reading the domestic and foreign literature related to the accuracy of performance forecast,the quality of internal control and the audit fees,the relationship among the three is sorted out,and the literature is summarized and reviewed.Then,based on information asymmetry theory,signal transmission theory,internal control theory and anchoring effect theory and institutional background,theoretical analysis are carried out,and thesis hypotheses are proposed.In the empirical study,the companies listed on the Shanghai and Shenzhen Stock Exchange's A-shares in 2013-2017 were selected as samples,and descriptive statistics,correlation analysis,regression analysis were carried out on 6,015 sample data to verify the thesis hypotheses.In order to ensure the reliability of the conclusion,the thesis conducts a robustness test and the conclusions are consistent with the original conclusions.The thesis' s research conclusions are as follows.Firstly,the accuracy of the company's prior performance forecast is significantly negatively correlated with the current audit fees.It indicates that the auditor will use the accuracy of information transmitted by the performance forecast as an indicator to evaluate the audit risk during the audit process.Secondly,high quality internal control can significantly alleviate the negative correlation between the accuracy of the prior performance forecast and the current audit fees,indicating that auditor has different risk perceptions of the accuracy of the prior performance forecast and different treatment of its effect on current audit fees in the face of different internal control quality.Thirdly,the quality of internal control does not have adjustment effect in state-owned enterprises,and it still has a significant adjustment effect in non-state-owned enterprises.Finally,based on the above conclusions,the thesis puts forward relevant suggestions from the perspective of the performance forecast disclosure system and the internal control system.