内部控制质量与审计定价相关性的分析-analysis of correlation between internal control quality and audit pricing.docxVIP

ABSTRACTAudit pricing which go by the name of audit fee, is the reward for the professional service provided by Certificated Public Accounting. It impacts not only the relationship between the company and the auditor, but also the independence of auditor, so the study on this field has been hot for a long time. The research on audit pricing in occident started earlier than orient. In 1980, it’s the first time that Simunic do the research with the empirical method. In China, the audit fee was not disclosed until China Securities Regulatory Commission forces the listed company to disclose the audit fee in their annual report. After that, more and more scholars start studying on audit fee with empirical method. Otherwise, internal control impacts the audit cost and audit risk. In general, audit pricing is impacted by two factors: audit cost and audit risk. After risk oriented audit approach has been created, the concern to the risk of the listed company by CPA has been enhanced remarkable. The good internal control can reduce the audit risk, so that impacts the audit pricing. But the bottleneck of this research is that it’s too difficult to judge the internal control quality. From 2012, Chinese listed companies are requested to audit their internal control. As the internal control audit report, the internal control quality can be evaluated.According to the review of the relating literature, this paper summarizes the conclusion of these literatures. Based on the conclusions, this paper analyses the relativity between the audit fee and the internal control quality by the ways of empirical research and normative research. This paper chooses all the listed companies in Shenzhen Stock Exchange from 2008 to 2011 as samples, after filtering, 1964 companies left finally. Based on the audit opinion of the internal control report, the quality of internal control can be separated into 4 levels. With the factors of impacting audit cost and audit risk, such as total assets, the com