The Quality Of Internal Control,Integration Of Audit And Audit Costs

The Enron Incident in 2001 is a typical case of collusion between companies and firms.In order to regulate the internal control of listed companies,the United States promulgated SOX Act,which requires all listed companies in the United States to disclose their internal control self-assessment reports and conduct internal control audits from 2006.The Act covers 76 companies listed in the United States.Therefore,our country urgently needs to further formulate and improve the internal control policies,and a series of related systems are introduced.Generally speaking,the internal control policy of Chinese companies mainly refers to the relevant regulations of the United States,but there are great differences in the relevant regulations of integrated auditing.American AS 5 mandates listed companies to choose integrated auditing,while China can make free choice between integrated auditing and individual auditing.Then,how will the listed companies in China choose between the two?What are the considerations in choosing?What are the economic consequences of different choice preferences for companies?Based on this,from the perspective of integrated audit strategy,this paper explores the choice factors and economic consequences of the integrated audit model of corporate management,and then studies the impact path and direction of internal control on audit costs.Based on literature analysis and statistical analysis,this paper finds that:firstly,the quality of internal control has a significant negative impact on audit fees,that is,good quality of internal control will produce lower audit fees;secondly,there is a significant positive correlation between the quality of internal control and integrated audit.The quality of internal control is good and tends to choose integrated audit;thirdly,the quality of internal control and audit fees are correlation.There is a significant negative correlation between integrated audit and audit fees.Integrated audit has a partial Mediating effect between internal control quality and audit fees.That is to say,companies with better internal control have a higher advantage in negotiating audit fees.It is possible to obtain discount of audit fees by adopting integrate audit.From the perspective of integrated audit strategy selection,this paper analyses the relationship between the quality of internal control and the inclination of integrated audit selection,and preliminarily verifies the intermediary effect of integrated audit in the quality of internal control and audit fees.On the one hand,it expands the research literature on internal control and audit fees of China's capital market companies.On the other hand,it enriches the company's research on the choice behavior of integrated audit and individual audit,and provides valuable reference suggestions for further strengthening and promoting internal control of listed companies and improving the related policies of integrated audit.