Research On The Impact Of Listed Companies' Social Responsibility And Internal Control On Audit Fee

In recent years,with the evolution of economy,factors affecting social harmony have emerged,such as ecological and environment pollution,food safety,etc.,all of which pose a threat to people’s health and sustainable economic development.Most of these problems are closely related to the low willingness of enterprises to fulfill their social responsibilities.Some problem enterprises should focus part of their development on the assumption of social responsibilities rather than only on economic interests.From the previous "melamine milk powder" incident to the "flag planting soil pit pickled Chinese cabbage" and "Meituan rider" incident in recent years,each vicious incident can trigger public discussion on corporate social responsibility.The performance of corporate social responsibility has also become a way to establish the corporate image,transmit the business status of the enterprise to the outside world,and maintain the relationship with external stakeholders.In this case,enterprises can fully use this channel to transmit signals to the outside world,improve the information transparency of enterprises and reduce the information asymmetry with the outside world by undertaking social responsibility and making relevant information public.Third parties can also use this part of information disclosed by enterprises to evaluate audit risks during audit.When social responsibility performance is good,The auditors’ confirmation of the audit risks they face may be reduced,which may lead to changes in audit costs.Based on this,this article use the way of combining empirical research and case study,taking into account the pillar role of manufacturing enterprises in the national economy,selects manufacturing enterprises as the research sample,therefore,when selecting samples,we focus on manufacturing enterprises listed in A-shares of Shanghai and Shenzhen Stock Exchange and put the research period in 2017-2021,and introduces the internal control as an adjusting variable to analyze its impact on audit costs,What is the impact on the relationship between corporate social responsibility and audit costs.Firstly,the basic analysis is carried out through descriptive statistics and correlation analysis;Then,by controlling individuals and time to carry out benchmark regression,it is found that corporate social responsibility and internal control have a negative impact on audit costs,but under the influence of internal control,the negative correlation between corporate social responsibility and audit costs will weaken;Then,the impact mechanism is tested.The robustness test is carried out by replacing variables and lagging variables,the final result is coherent with the benchmark regression;Finally,according to the nature of property rights,the size of companies and the level of regional economic development,group regression is carried out for further analysis.This paper takes Shanghai Jiahua United Co.,Ltd.as the research object,analyzes its corporate social responsibility performance,internal control level and changes in audit costs,and finds that Shanghai Jiahua has improved its internal control level by actively performing its social responsibility and making disclosure,which has reduced its audit costs.Through this study,not only can certified public accountants better evaluate audit risks,but also provide a basis for enterprises to judge whether they should actively assume social responsibility and improve the level of internal control.In addition,it will also provide important reference for the government departments to establish and improve a more strict social responsibility standard system.