The Research Of Audit Fee Rate Based On Audit Quality

The research of audit fee is a very important item in auditing research fields. In the audit market, the auditor provides audit service and market investors need to audit service. The supply and the requirement of Audit services complete the transaction through market mechanism by both sides of two-way choice. Currently our audit market development is not perfect. It is hardly valid voluntary requirements of audit service because of the supervision of the government .Finally, audit pricing is not formed a market-oriented pricing mechanism. It brings about Audit quality degradation that phenomenon of low balling and the auditing opinions purchasing in audit market. The research of audit fee is of great significance in order to regulate audit market securities-market.This article tries to improve and expand the audit fee research based on existing research, through the introduction of the audit rate per unit mass of the composite variables, to improve and expand the audit fee research. Its significance is that auditors in the audit market for audit services to get paid after the unit of quantization. Mathematically rate per unit mass of audit fees and audit fees expressed as the ratio of audit quality. It measures the audit intrinsic value that auditors provide audit services , it is also the value that qualified auditors provide quality audit services to fulfill the role of the internal socio-economic.This paper empirically study on the influence factors of audit fees per unit mass based on empirical data of listed companies of 2005-2009 as samples. The result is that audit fees per unit mass is associated with the size of the audited entity customers, profitability, financial risk, audit opinions and audit fees per unit mass is associated with the risks inherent in the audited entity that is working capital to total assets ratio of negative correlation. There is also standing in the economic and social point of view. Rate per unit mass of audit fees is associated with audit market structure factors, geographic factors show some correlation.