The study on the relationship of internal control quality and audit fees

In order to examine the economic consequences of internal control, we made a study on the relationship between the quality of internal control and auditfee by linear regression method, using the data from 1168 Shanghai and Shenzhen listed companies. The results as flow: internal control quality and audit fees have No-significant negative correlation, the auditor still control audit risk through substantive testing. The conclusion provide empirical evidence and theoretical basis, of cultivating endogenous requirements of internal control, and the establishment of internal control which adaptation to the Chinese national system .