| Variable type | Variable name | Variable Definition |
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| Dependent Variable | ICOP | Internal control audit opinion. 1 for modified opinion, 0 otherwise |
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| Explanatory Variables | ICAF | Internal control audit fees, expressed in natural logarithm |
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| ICAF_r | The proportion of internal control audit fees to total audit fees |
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| Pre_ICOP | Internal control audit opinion of the previous year |
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| ICQ | The natural logarithm of DIB internal control quality index |
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| DA | Absolute value of discretionary accruals |
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| AGE | Years of listing |
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| SIZE | Natural logarithm of total assets |
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| ROA | Profitability, measured by company’s return on total assets |
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| LEV | Financial leverage, measured by asset-liability ratio |
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| Control Variables | LOSS | Equals 1 when the net income is negative, 0 otherwise |
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| CFO | Operating net cash flow divided by total assets |
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| GRTH | Operating income growth rate |
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| INVTA | Inventory divided by total assets |
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| RECTA | Account receivable divided by total assets |
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| SOE | Equals 1 if the company is state-owned, 0 otherwise |
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| ICBIG10 | Equals 1 when the internal control audit firm is “big ten” |
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| INDUS | Dummy variables of the industries |
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| YEAR | Dummy variables of the years |
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