The Gambling Analysis On Audit Pricing

The game theory is to abstract complex behavior relations among different participants in the real world, summarize the benefit conflict and coordination of different participants, and study strategies choice of different participants through constructing the economic activities model which can analyze questions more accurately. The process of audit pricing is policy-making among accounting firm, audited unit, trustee, supervising and management organization to make their behavior affect mutually and reach the balance, so it belongs to the game theory question.In order to apply game theory to different stage of audit service, the thesis uses marketing rule, behavior psychology, request - proxy theory and insurance theory, and it also analyzes the factors of audit pricing. Audit pricing utilize gambling matrix and other game theory analyzing methods to analyze tactics that chose by accounting firm or other participants. It is proved that any behavior or motive will make a difference to audit pricing, so it also analyzes some reasons of low charge in our country. The thesis includes theory and case analysis, and the theory of gambling analysis includes the competition of gathering customers, audit quality, audit plot, audit supervising, and other influent factors; the case analyzes the Andersen case and the merge case of Beijing Tianjian and Deloitte & Touche.The conclusions get from analysis include that the competition of gathering customers leads to the lower audit pricing which is disadvantageous to the development of audit market; there exists correlation dependence between audit quality and audit pricing. The high audit expense has dual characteristic. On one hand it can guarantee the quality of audit report, on the other hand it maybe destroy audit independence, and cause the audit plot; The punishment which comes from the supervising and managing organization is not enough to prevent the illegal audit; The audit expense is higher than economical punishment, which is one of reasons that why audit plot usually occurs; Non-audit service menace independence, and influence audit charge. The enhancement of non-audit expense will cause the enhancement of audit fee, so accounting firm often lose independence because of the high non- audit expense; The audit prestige, the scale of accounting firm and other factors make a difference in the same way; The domestic accounting firms have no superiority to overseas accounting firms, therefore audit pricing level made by domestic accounting firms is much lower than that made by overseas accounting firms.The gambling analysis on audit pricing has important practical significance to understand the constitution of audit fees, rule audit charge in our country, ensure the audit quality, and enhance marketing competition of domestic accounting firms.