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The study selected the textile industry in Shanghai and shenzhen from 2012 to 2016 as the research sample, and empirically studied the impact of business diversification and internal control on audit fees by using the data obtained from financial terminals and dibo database. The study found that business diversification was negatively correlated with audit fees, that is, the higher the degree of business diversification, the lower the audit fees. There is a significant negative correlation between the level of internal control and audit fees, that is, the higher the internal control is, the more effective the internal control is, and the lower the audit fees are. Business diversification and internal control are not significantly related to audit charges, and they have no joint effect on audit charges in the textile industry.

Business Diversification, Internal Control and Audit Fees-- Empirical Evidence from the Textile Industry