Internal Control, External Audit and Corporate Cash Flow Risk

Based on the sample of A-share listed companies in Shanghai and Shenzhen from 2014 to 2019, this paper empirically tests the impact of internal control and external audit on corporate cash flow risk and the interaction between the two in affecting cash flow risk. The results show that high-quality i...

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Bibliographic Details
Published inE3S Web of Conferences Vol. 292; p. 2016
Main Authors Liu, Wanting, Zhao, Qianyu, Fu, Gang
Format Journal Article Conference Proceeding
LanguageEnglish
Published Les Ulis EDP Sciences 01.01.2021
Subjects
Cash flow
Financial management
Flow
Risk
Risk management
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Summary:Based on the sample of A-share listed companies in Shanghai and Shenzhen from 2014 to 2019, this paper empirically tests the impact of internal control and external audit on corporate cash flow risk and the interaction between the two in affecting cash flow risk. The results show that high-quality internal control and external auditing can independently reduce corporate cash flow risks, and the two play a substitute effect in this process. The research conclusions expand the impact of the company’s internal and external governance mechanisms on cash flow risks, and are of great significance for companies to effectively use internal and external resources to prevent and manage cash flow risks.
ISSN:2267-1242
2555-0403
2267-1242
DOI:10.1051/e3sconf/202129202016