The Determinants Of Audit Fees Change Without The Effects Of Auditor Change

The study on audit fees has been attached more and more importance. However, most of the empirical researches focused on determinants of audit fees, researches on determinants of audit fees change were few. In fact, determinants of audit fees change can bring benefits to both the authorities and the public. This essay is based on a sample of all listed companies in the SZSE A stock market who did not change their auditors between 2004 and 2005. A model is constructed for regression analysis, two factors are found significantly relative to audit fees change. These two factors are change of size and change of ratio D/A. In additional, change of ratio CF/D, opinion purchase and change of earnings management also have affections on audit fees change, but change of ROE has no relation to audit fees change. According to the empirical research results, I conclude that possibility of opinion purchase will be obvious when change of size, ratio D/A and CF/D is insignificant, or even has negative affections on audit fees change. Finally, the essay brings forth the policy implication of those empirical evidence.