Research on the Influence Path of Internal Control Quality on Audit Fees

——Based on the Intermediary Effect of Disclosure of Key Audit Matters

DOI

10.2991/978-94-6463-036-7_239How to use a DOI?

Keywords

Internal control quality; Audit fees; Key audit matters

Abstract

China's new audit standards issued in 2016 increased the disclosure of key audit matters, which aims to improve audit quality and standardize audit fees. Because the quality of enterprise internal control is closely related to the risk of material misstatement and special risk of financial reports assessed by auditors, it is necessary to study the impact of enterprise internal control quality on auditors’ disclosure of key audit matters. This paper selects A-share listed companies that disclosed key audit matters in 2016 a + H shares and 2017–2019 annual reports as the research object, and studies the impact path of internal control quality on audit fees from the perspective of the number of key audit matters disclosed. It is found that when the quality of internal control is lower, auditors will choose to disclose more key audit matters, which will lead to the increase of audit fees; Further study found that in the non four audit classification groups, the number of key audit matters disclosed plays a partial intermediary effect between the quality of internal control and audit fees. This study aims to reveal the impact of unreasonable audit fees on audit quality. It is necessary to improve the adequacy and effectiveness of the disclosure of key audit matters, so as to standardize the rationality of audit fees.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sheng Shujun
PY  - 2022
DA  - 2022/12/31
TI  - Research on the Influence Path of Internal Control Quality on Audit Fees
BT  - Proceedings of the 2022 2nd International Conference on Economic Development and Business Culture (ICEDBC 2022)
PB  - Atlantis Press
SP  - 1598
EP  - 1606
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-036-7_239
DO  - 10.2991/978-94-6463-036-7_239
ID  - Shujun2022
ER  -