E3S Web Conf.
Volume 292, 20212021 2nd International Conference on New Energy Technology and Industrial Development (NETID 2021)
|Number of page(s)||6|
|Section||New Energy Economy and Energy Blockchain Application|
|Published online||09 September 2021|
Internal Control, External Audit and Corporate Cash Flow Risk
1 College of management, Sichuan Agricultural University, Chengdu, China
2 Sichuan Vocational College of Finance and Economics, Chengdu, China
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.
© The Authors, published by EDP Sciences, 2021
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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