Auditor's Personal Experience,Institutional Environment And Internal Control Audit Quality

Since the implementation of mandatory internal control audits by listed companies in China in 2011,the proportion of listed companies' internal control audit reports has increased year by year,and the proportion of non-standard audit opinions on internal control audit reports has also increased year by year.To a certain extent,this indicates the improvement of the quality of internal control audit in China.In this case,it is meaningful to explore the factors affecting the quality of internal control auditing.Beginning in 2017,the United States began to announce the names of auditors who performed auditing of listed companies.The relationship between the auditor's personal level and audit quality has received more attention and research.However,the current literature on the auditor's personal experience and the quality of financial auditing has not yet reached a consistent conclusion.And there is a lack of research on the auditor's personal experience and internal control audit quality.Based on the above background,this paper takes 7309 data of A-share listed companies in China from 2008 to 2017 as a sample to explore the different impacts of the personal experience of two signed auditors on the quality of internal control audit.The auditing environment is one of the important factors affecting the quality of auditing.Both formal and informal systems can have an impact on audit quality as an important aspect of the auditing environment.It is meaningful to put the research on the relationship between auditors and audit quality in a certain institutional context.Considering the current coexistence of China's capital market compulsory and voluntary internal control audit,this paper explores the role of mandatory internal control audit policy in moderating the relationship between signature auditors and internal control audit quality.In addition,China is in the process of economic transformation,the formal system is imperfect and not perfect,and the informal system plays a big substitute role.Therefore,this paper further explores the impact of regional corruption,a very common informal system,on the moderating role of mandatory internal control audit policies.The research process of this paper is as follows:Firstly,the connotation of internal control audit is expounded.Then this paper uses high-order theory as the main theoretical basis to analyze the impact of project partners and project site leaders on the quality of internal control audit.The multiple regression model was used for empirical analysis.Further,based on the theory of institutional theory,the paper analyzes the role of the mandatory internal control audit policy in regulating the relationship between auditors' personal experience and internal control audit quality.The empirical part examines the moderating effect of the mandatory internal control audit policy by setting the interaction term.Finally,the impact of regional corruption on the moderating role of mandatory internal control audit policies is explored.The empirical part classifies the sample company as a high-corruption regional company group and a low-corruption regional company group according to the degree of regional corruption.Then,each group was subj ected to multiple regression analysis.The main conclusions of this paper are as follows:Firstly,the experience of project partners is significantly positively correlated with the quality of internal control audits,but the relationship between the experience of proj ect leaders and the quality of internal control audits is not significant;Secondly,the mandatory internal control audit policy has a negative moderating effect on the relationship between proj ect partner experience and internal control audit quality.Finally,in low-corruption areas,the mandatory internal control audit policy has a significant negative moderating effect on the relationship between project partners' personal experience and internal control audit quality,but this negative moderating effect is not significant in high-corrupt areas.In addition,the research in this paper also found that Big4 is positively related to the quality of internal control audit,but there is no such significant positive correlation in high-corruption areas.The possible contributions or existing innovations of this research are:(1)to explore the reasonable measurement method of internal control audit quality;(2)to distinguish the status of two signed auditors in the internal control audit report,and to explore The relationship between the personal experience of the two individuals and the quality of the internal control audit was explored separately.(3)The impact of the informal system of regional corruption on the implementation of the internal control audit policy was considered.