The Research On The Relationship Between Abnormal Audit Fee And Opinion Shopping

In socialist market economy circumstances,the separation of the right of ownership from the right of management is the premise of modern corporate system building.The separation's contingency question is how the proprietor and other interest counterparts to supervise and assess the condition of execution of fiduciary operation responsibility of manager,the most important basis is the accounting information announced by the manager.Then,the proprietor and other interest counterparts need the CPA to verify the authenticity,validity and fairness of financial statements.But,in recent years,audit collusion cases that exposed frequently in securities market bring forth suspicions on the whole capital market's basis of credit.Opinion shopping becomes the focus that the accounting community pays close attention to.The early studies on the opinion shopping are almost related to the auditor switching.But as the requirement of announcing auditor switching becomes more and more strict,and as the interest counterparts becomes more and more alert and sensitive to auditor switching, the manager may change his way of opinion shopping.Increasing audit fee may be a more concealed way.Accordingly,the thesis studies the probability of opinion shopping successfully from the angle of audit fee.The thesis chooses the public company listed in the Shanghai Securities Exchange during the year 2004-2006 as research sample,first use Linear Regression to define the relationship between normal audit fee and asset,according to the increasing level of the exposal audit collusion company's audit fee to fix the upper limit of normal audit fee,to define the ABFEE variable;next utilize Lennox's audit opinion prediction model to distinguish those company that has motive to shop audit opinion,we find that there are 37.1%company increased their audit fee,and they lowered the probability of audit opinion worsening,so the public company in the Shanghai Securities Exchange has opinion shopping motivation;then,use the company who has shopping motivation as the sample,to regress the audit opinion prediction model to define the probability that a public company might receive a non-standard audit opinion when it increases its audit fee or not,to define the opinion shopping variable;in the end,utilize abnormal audit fee's influencing factor model to analyze the relation between opinion shopping variable and ABFEE variable.From the descreptive analysis of opinion shopping variable,we find that the audit opinion improving probability of the company who received standard audit opinion last year is different from those who received non-standard audit opinion last year.So we classify the sample into two categories:the company received standard audit opinion last year and the company received non-standard audit opinion last year. Eventually we find that the public company that received a standard audit opinion last year can achieve his aim successfully,while the public company that received a non-standard audit opinion last year can't hit the target successfully.Finally,according to the research put forward some proposals,hope to help to construct a dependable and effectual auditing market,and put the auditing market into fullplay.