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

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.