Does The Safety Of Employee Workplace Affect Audit Pricing？

All the time,production safety accidents have been received wide attention from the society.The occurrence of production safety accidents causes serious financial losses,as well as brings heavy injuries to the families of the injured and killed employees.In recent years,although the overall domestic production safety situation is better,serious safety accidents still occur from time to time.For the sake of reducing the occurrence of accidents in production safety and ensure the security of employees in the workplace,the law of the people’s Republic of China on work safety was implemented in 2002,which was gradually improved after several revisions.In April 2020,In order to better implement General Secretary Xi’s important exposition on production safety,the three-year action plan for special rectification of production safety in the whole country was officially launched,so it can be seen that production safety has always been a matter of concern to the society and the state attaches importance to it.For a long time,many scholars have been exploring the causes of production safety accidents,the lack of safety investment,the influence of psychological factors and so on are the important causes of production safety accidents.But for the occurrence of production safety accidents,we should not only explore its causes,put forward countermeasures,but also study the economic consequences of production safety accidents,because only by putting the consequences of events in front of people can people pay enough attention to them.At present,there is less research on the economic consequences of production safety accidents,most scholars only pay attention to the impact of production safety accidents on the value of enterprises,and few scholars study the other economic consequences of production safety accidents.This paper studies the impact of employee mortality on audit costs by linking employee mortality to replace the severity of safety accidents,and further analyzes the mechanism of employee mortality affecting audit costs,thus expanding the scope of research on the economic consequences of employee mortality.Based on the availability of data on the number of deaths caused by production safety accidents,this paper selects data on the number of deaths caused by production safety accidents in nine industries from 2008 to 2016,empirically tests the impact of employee mortality on audit costs in the next year of production safety accidents.And draws the following conclusions:First,increased employee mortality rates will significantly contribute to increased audit costs;second,When the production safety accident causes the death of the employees,due to the problems of the production and operation of the listed companies exposed by the production safety accident and the extensive social concern and the supervision of the relevant departments,the audit risk faced by the auditors increased significantly.The main innovation of this paper is the novel research perspective,This paper studies the impact of employee mortality on audit costs and explores the way in which employee mortality affects audit costs.The research of this paper not only expands the correlational studies ideas of the influencing factors of audit fees,but also expands the research scope of economic consequences of employee mortality.At the same time,the research of this paper also has certain practical significance,which can provide reference for managers to make reasonable business decisions,and at the same time,it can remind investors to pay attention not only to the performance of enterprises,but also to consider comprehensive and prudent investment.