An Empirical Study Of The Determinants Of Listed Companies' Audit Fees In The Shanghai A Stock Market

Audit fee is a crucial aspect of the application of CPA audit and also is an essential link of the demand and supply in the audit market. It is a key factor of the quality of audit and also affects the sustainable development of CPA profession. Audit fee plays an important part in guaranteering the operation of security market. Audit fee is not transparent, is easy to make purchase audit opinion and so on to impair auditor's independent behavior. The excessively low audit fee can cause the abbreviation partial essential audit procedure, the arrangement specialized low level auditors and so on, thus causes reduce the audit quality, But the high audit fee will increase shareholder's unnecessary burden. In Dec.2001, China Securities Regulatory Commission Released and have provided us the policy support to obtains the public audit fee, also provided the good opportunity to do effective research about the audit fee.This text is on the basis of drawing the western literature, Uses annual report audit fee data which publicly disclosed, makes an Empirical Study of the determinants of audit fees in the Shanghai A Stock market. And puts forward certain policy proposals. After collecting the audit fees data of 632 sample companies from 2001-2003 annual reports, Through revision the western audit fee model, we set up the multiple linear regression model of audit fees suitable for our country and relevant influence factor. We also make a further research on the influence of audit firm's scale. The result is follows. (1) The scale of the listed company's assets is the first big factor affect the audit fee;(2) The determinants are subsidiary counts involved in amalgamate report, the audit firm's scale, the list company's location to be remarkable with the audit fee; (3) Our country's unique company stockholder's rights structure truly influence the audit fee, The selection three scales-owned stocks proportion, the circulation stock proportion and the audit fee remarkable inverse correlation, the independent trustee population and the audit fee is remarkable is being connected, Prove the inside people of the listed company of our country control the problem seriously , and the independent director plays a certain role in preventing the big shareholder from impairing the medium and small stockholder's equity, but the result still remains to strengthen further;(4) Our country accounting firm when is engaged in the audit service, to has not fullyconsidered the risk of the listed company's financial risk; (5) The audit firm's scale Influence the audit fee obtains further conclusion is: The Chinese auditor's reputation mechanism has not been set up far, the differential effect of the office has not taken shape yet, no matter on the big customer's market or small customer's market, all have fierce market competition.