Research On The Impact Of Mandatory Rulers Of Internal Control Audit On Value Relevance Of Accounting Information

As an external governance mechanism,internal control audit not only ensures the quality of internal control,but also enhances the credibility of information disclosure.Internal control audit has peculiarity in China,and has experienced the transition from voluntary rules to mandatory rules.This paper studies the relationship between mandatory rules of internal control audit and the value relevance of accounting information,including the influence of mandatory rules of internal control audit opinion type and audit mode on the value relevance of accounting information.It also analyzes and verifies the effects of earnings quality,institutional investor shareholding and analyst focus on the impact of mandatory rules of internal control audit on the value relevance of accounting information.Firstly,this paper introduces the research background and significance,and systematically reviews the existing literature and conclusions on the value relevance of accounting information and its relationship with mandatory rules of internal control audit,earnings quality,institutional investor shareholding and analyst focus.At the same time,by defining the relevant concepts and elaborating the relevant theoretical basis,it lays a theoretical foundation for the follow-up.Secondly,taking the listed companies that conducted internal control audit from 2007 to 2021 as samples,multiple regression method is used to analyze the influence of mandatory rules of internal control audit on the value relevance of accounting information.The results show that: compared with the voluntary internal control audit,the mandatory rules of internal control audit weaken the value relevance of accounting information.Under mandatory rules,information users’ perception of internal control audit opinion types is not affected by mandatory rules,and information users’ perception of internal control audit mode becomes stronger.Thirdly,the earnings quality,the institutional investor shareholding and the analyst focus have regulatory effects,alleviating the negative impact of the mandatory rules of internal control audit on the value relevance of accounting information.Finally,according to the results of empirical analysis,it put forward suggestions at the level of internal and external company to improve the value relevance of accounting information.