| Audit fee is a crucial aspect of the application of CPA audit, and also isan essential link of the demand and supply in the audit market. It is a keyfactor of the quality of audit and also affects the sustainable development ofCPA profession. Audit fee plays an important part in guaranteeing theoperation of security market. However, the information on audit fees hasnot been aboveboard to the public for a long time until, 2001, ChinaSecurities Regulatory Commission released and on December 24th. Audit feeshould fairly reflect the value of the professional service offered by auditors,and the improper price would affect the audit quality and auditors'independence. So audit fee becomes the very topic under the publicattention in recent years. This article deems audit information as a commodity of information,so-called auditing information commodity. Under this assumption ofinformation products, the article applies the economics methodology ofnormative study and positive study to do the research on the pricing ofaudit. There are two fields focused in the article: firstly it analyzes theinfluence of information commodity on audit pricing, based on the theoryof information economics; secondly obtains the date of three years from2001 to 2003 in annual reports of listed companies, it adopts a model toanalyze the influence of some factors on the audit pricing and makes somesuggestions. Chapter one [Foreword] includes the overview of study, objective andscope of study, methods of study and the innovation of this article. In thischapter, author states the main difference between the situation of foreignand domestic research, the history and the status of standards of audit fee. Chapter two is about theoretical analysis of the pricing of auditinginformation commodity. Firstly author regards the service that the auditorsoffered as audit information. In this part, based on the theory of informationeconomics, author concludes that audit information is satisfied to threebasic conditions and comes to a conclusion that what the auditor offered isan audit information commodity. Then through the analysis of auditinginformation attributes, author makes effort to know how the feature ofinformation commodity impact upon the pricing of audit from threedifferent aspects: value /value in use and cost. In Chapter three, the empirical test of the price of audit informationcommodity in domestic stock market. Reviewing the relevant documents ofpricing and the current situation of audit fee in China's audit market, thisarticle chooses 175 listed company from Shanghai Stock Exchange as thesample according to certain standards. All of these companies haveexplicitly disclosed the information of audit fee from 2001 to 2003, so it isconvenient to observe the trend of audit fee and find out the factors thataffect the pricing. Based on the factors that affect the pricing of information products, Iexploit 11 hypotheses such as assets,number of subsidiary,debt-assetratio,the scale of accounting firm,the duration of auditing, meanwhilethree factors referred in the American study on audit fees and the realsituation in China are also considered. The article also sets up somevariables to describe following situations respectively: natural logarithm ofgross assets,the extraction root of the number of subsidiary,the proportionof account receivable to assets,the proportion of the sum of inventory andfixed assets to gross assets,debt-asset ratio,the proportion of net cash flowfrom business operations,if return on equity ranges from 0 to 2% or notand it ranges from 6% to 7% or not,if the accounting firm hired bycompany listed or not and so on. Some models are adopted in order to study the current situation ofaudit fee in China. Firstly the article probes respectively five sorts offactors into model to make regression analysis, which represent s... |
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