Research On The Impact Of Environmental Information Disclosure On Audit Fees

As a typical unit of environmental consumption,an enterprise should pay attention to the fulfillment of relevant environmental responsibilities and actively disclose environmental information.Environmental information may have an important impact on an enterprise’s financial statements.Auditors with information assurance functions should pay full attention to environmental issues disclosed by the enterprise.The consideration of auditors may ultimately be reflected in the form of audit fees.Based on a systematic review of corporate environmental information disclosure,factors affecting audit fees,and the relationship between environmental information disclosure and audit fees,this paper uses organizational legitimacy theory,audit risk theory,audit price theory to support the mechanism of the impact of environmental information disclosure on audit fees.Analyze and propose research hypotheses,and then take China’s Shanghai and Shenzhen A-share listed companies from 2010 to 2018 as research samples to verify the research hypotheses empirically and explore specificaction paths.Then introduced the uncertainty of economic policy as a moderator to further examine the impact of environmental information disclosure on audit fees.The following conclusions are drawn: First,environmental information disclosure has a significant positive impact on audit fees.Second,the risk of material misstatement plays a part of the intermediary role in the impact of environmental information disclosed by the company on the decision of auditors’ fees.That is,the disclosure of corporate environmental information increases the risk of material misstatement of financial statements,thereby increasing audit fees.Third,economic policy uncertainty has weakened the positive impact of environmental information disclosure on audit fees.Based on the results of the study,policy recommendations are proposed.First,establish an environmental information disclosure system.Second,strengthen skills training for financial personnel.Third,auditors should pay attention to economic policies.This paper creatively focuses the research perspective of environmental information disclosure on the behavioral decision of auditors,which is the information intermediary role connecting information producers and users,and further explores the role ofenvironmental information disclosure on audit fees.In addition,considering the impact of the macroeconomic environment,the research results are more realistic and applicable.