The Impact Of Differences Between Accounting Income And Taxable Income On Audit Fees And Audit Opinion

The research indicated that differences between accounting income and taxableincome provide accrual accounting information in management control, CPA will ornot make use of the reflect information of this differences in the audit process andaudit report issued? What will the differences between accounting income and taxableincome impact the audit process and audit report issued? This article is based on thisthinking, testing the differences between accounting income and taxable incomeimpact the external independent auditor’s audit process and audit fees? Empiricalresults indicate that the differences between accounting income and taxable incomeare correlated with audit fees and audit opinion. Empirical evidence shows thatauditors take full advantage of the reflected information of the differences betweenaccounting income and taxable income.