Research Of Relationship Between Listed Companies' Financial Risk And Audit Fee

Audit fee is an important factor in Audit market. Its level plays an essential role in the activity of independence and audit quality. Therefore, it has become the focus of theoretical circles. Besides, the further development of risk-oriented audit has made a certain changes in pricing mode. The risk-oriented audit emphasis on risk analysis, judgments and assessment, and the allocation of audit resources. It must take the risk as the orientation, and have more audit resources in high risk areas which lead to high audit fee. As an important risk category of listed companies, the level of financial risk could influence the determination of the audit fees. Through exploring the relationship between financial risk in manufacturing sector and audit fees, this thesis gives a broad understanding about China's pricing model in new marketing audit.Based on theoretical analysis of financial risk in listed companies and audit fees, as well as evaluation of the effectiveness coefficient of listed companies, this paper makes a demonstration to stday The relationship of the financial risk and audit fee .In the process of empirical study, the author divides finical risk into several financial index on the basis of general risk factors so that we can have a better understanding about the relationship between financial risk and audit fees. The main conclusions of this paper are as follows: (1) there is a positive relation between financial risk of listed companies and audit fee. which means risk-oriented audit model has a certain impact on audit pricing. (2)there is a negative correlation between the financial efficiency, solvency, assets operating capacity andaudit fee, and is no relevant to listed companies' capacity of development. According to the above conclusions, we can improve our understanding of the audit pricing model, so as to strengthen thesupervision of audit fees.