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The Effect of the Quality of the Internal Control System on the Audit Fees: Evidence from France

In fact, a lot of previous research studied the effect of the internal control system quality (ICSQ) on the audit quality. It draws on the theory that the internal control system as a gouvernance mecanism decreases the asymetry information. Therefore, the internal control system efficiency decrease decreases the audit risk. Therefore, within the framework of the stakeholder’s theory, the audit quality is dependent on the firm’s characteristics, including the internal control system. For this reason, the aim of this research consists in extending the existing research by investigating the effects of the audit fees on the internal control structure quality (ICSQ) in some listed French firms. In fact, using 572 firm-year observations, for the period from 2017 to 2020, we experimented one economitric design, where the ordinary least squares (OLS) regressions results show that the ICSQ has a negative effect on the audit fees. Therefore, our results are consistent with the achievement of one of the intended outcomes of accounting reform-decreased asymetry information and increased accounting quality through an effective internal control system. Moreover, our study highlights the information provided by the 11SQ accurate measurement, which is potentially useful to enlighten internal and external governance decision-making. Finally, based on the conclusions, this study presents the basis for the explanation of the relationship between the internal control system quality and the audit fees. Moreover, it provides some suggestions for the improvement of the internal control quality. Therefore, an empirical verification process will be carried out later.

Audit Fees, Audit Quality, Internal Control, Internal Control Quality, Ordinary Least Squares (OLS)

Kais Mabrouki, Suzan Charfi. (2023). The Effect of the Quality of the Internal Control System on the Audit Fees: Evidence from France. International Journal of Accounting, Finance and Risk Management, 8(3), 68-78.

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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