The Present Condition Analysis Of Audit Fees Between Different Boards In A-share Of China

Since the GEM started in the Shenzhen Stock Exchange of China at2009, capital market has been divided into main board, small board and the GEM. There are great differences in the three boards in the fields of the growth, size, operational risks and so on. Independent auditing, as an important part of capital market integration institutional arrangements, is designed to reduce information risk of financial statements users. Because audit fee is an important measure of audit quality and audit efficiency, it is necessary and significant to compare present condition of audit fees in disparate boards.Firstly, based on the principal-agent theory, theory of contractual relations audit, and audit supply and demand theory, the paper enriched audit fee characteristics in the way of customer scale, corporate governance, business risk and auditor characteristics. Secondly, by the way of comparing different characteristics and different audit demand of enterprises in the three boards in the capital market, the paper sketched the A-share of China capital market, analysed the audit fees realities of Chinese A stock capital market in2009, and found that enterprises in different boards had different sensitivity for audit fees, audit fee characteristics in different boards had different performance extent, audit fees could reflect the quality of financial statements and audit services, but also found such issues as the illegal disclosed of audit fees information, low audit fees, unreasonable choice of the auditor and curbing cheap Showmanship in audit market. Finally, the paper, in view of accounting firms, provided industry advices such as improving audit quality and curbing cheap Showmanship, in view of the regulator, provided policy recommendations such as strengthening the disclosure of audit fees information, price control of audit fees and demand of auditing qualification in minor enterprises, classifying the GEM enterprise further.