The Study Of The Audit Fee From The Main Body Of Audit Relationship

Audit service is a kind of special intermediary service,which shows high risk but high profit.However,its peculiarity decides it can't achieve the maximum social welfare by price competition as other service industry.Recently,the quality of audit reports were suspected and concerned from the public,which were induced from the continuous scandal about the financial cheat.However,the audit fee was putting forward day by day among the lots of the factors that can affect the quality of audit.The audit fee has impact on the independence of auditors and the quality of the audit directly.In this article,we analyzed the background of the audit fee,and reviewed the development history of the audit product and the achievement of the theory literature in and out of China.We brought about the theory foundation with homology and described the condition of the audit market currently.In the demonstration part,we selected 576 samples of 96 companies which exchanged the stocks in the Shanghai Stock Exchange, which is about 6 years from 2002 to 2007.In the end,with the conclusion and the analysis of the audit market we put forward the relevant norms of the audit fee response.Overall,this article explored the factors of audit pricing from the following three aspects:Firstly,lots of research methods were used in this paper,as the combination of normative and empirical research,macro-and micro-analysis,qualitative and quantitative analysis,economic theory and modern management theory.Secondly,the empirical research was carried on according to the two aspects:years and industries,which made the samples on a high degree of continuity and consistency in horizontal and vertical.Thirdly,the conclusions of the empirical research have some theoretical and practical significance.As the different characteristics of the different industries,the audit pricing models derived from the different industries have great otherness.From the different audit models of different years,we can see the audit risk plays more and more important roles in the audit pricing,which reflects the characteristics of modern risk audit. Lastly,in this paper,the conclusions and the suggestions are put forward in two ways.By analyzing the interest bodies related to the audit fee through the Game Theory, we put forward the suggestions of enhancing the impact on the Certified Public Accountants If the shareholders.Through the empirical analyzing,we put forward strengthening the building of the domestic accounting firms,developing a reasonable price audit fees and improving the bidding.And further more we recommend further strengthening of the audit fee disclosure standards.