The Impact of Audit Quality on the Efficiency of Internal Control of Listed Companies

In order to explore the impact of audit quality on the effectiveness of internal control of listed companies, this paper uses the data of 902 listed companies in A -share market of Shanghai Stock Exchange in 2015 as a sample to measure the audit quality based on accounting firm size and audit fees, and empirically tests the effect. The results show that the scale of the accounting firm is significantly and positively correlated with the effectiveness of internal control, supporting the view that the larger the firm is, the more effective internal control is. The audit fees are significantly and positively related to the effectiveness of internal control, indicating that higher audit fees provide effective guarantee for internal control. The result of this paper examines the divergence in the relationship between the firm size and the effectiveness of internal control in previous studies and enriches the related research, which is of great significance for the company to enhance the audit quality and improve the internal control.