The Relationship Test Between Audint Fee And The Extent Of Earing Management,Purchasing Of Auditing Opinion

Controlling earning management,normalizing auditing fees and preventing auditing opinion purchasing, have great effects not only on public companies, but also on the effect of capital market, better collocation of resources and the development of auditing market.The managers, in order to get more private interests,have the motivation to conduct earning management, on the other hand, auditing fees are the most important revenue of the Certified Public Accountants,which are based on rational economic man assumption and self-financing. Managers can avoid the bad results caused by earning management by improving auditing fees and get more auditing fees by offering the auditing opinion of the public company eager, so they can get a private cooperation according to a link of interest.However, what's the unity of auditing fees between the extent of earning management and the auditing opinion purchasing? Is there a conductive chain among three? These are what this dissertation studies.This, dissertation uses Principal-agent Theory,Contract theory,Rent Accounting theory and so on to analyze earning management,auditing fees and auditing opinion purchasing,and then puts the non-financial industry public companies in 2007 and 2008 as the analyze samples, uses adjusted Jones model to compute the maneuverability accrual profit, uses its absolute value as a measurement index to test relationship among the extent of earning management,auditing fees and auditing opinion purchasing.The result of empirical study shows that the public companies, with a large extent of earning management and a standard audit opinion, have a positive relationship with the auditing fees;The probability of which the auditors issue standard auditing opinion also have a positive relationship with auditing fees. These show that auditing fee acts as the link or bridge between the extent of earning management and auditing opinion purchasing. Finally, improvements are suggested on empirical findings.