Based on the internal control auditing system in China, this paper
studies the relationship between internal control audit fees and internal
control audit quality. Using the 2011-2016 A-share listed company data test, it
is found that under the control of other possible conditions, the higher the
internal control audit fee and its proportion, the lower the probability of being
issued anon-standard internal control audit opinion, which means that the relatively
high internal control audit fee may be paid by companies to purchase more
favorable internal control audit opinions. Further, the above result is found
to be more significant in non-state-owned, relatively smaller companies, and
clients whose total audit fees are higher. In general, from the research conclusions
of this paper, the high internal control audit fees can be a form of damage to the
independence and quality of internal control audit. The results have certain
guiding significance for policy makers to further improve the internal control
auditing system and regulate the disclosure of internal control audit fees, and
also for the decision-making of auditors and listed companies.
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