An Empirical Study Of Influence On Information Related To Environmental Matters In The Financial Report And Audit Fee

With environmental problems constantly emerging, government and social public are awareness of the environment. Government has passed laws and regulations to restrict companies’ behavior. Social public calls for companies to increase the channels and content of environmental matters in order to strengthen environmental information symmetry. Companies are important members of society, in order to meet the needs of the government and social public, having obligation and taking responsibility to strengthen environmental matters.Certified public accountants are independent as the third party to identify the companies’ financial report, enhancing the veracity and reliability of information in the financial report, so that the stakeholder can make better decisions. When certified public accountants audit financial report, paying attention to environmental matters, it increases environmental matters judgment and audit procedures, raising the cost of the audit and the audit fee increasing. So far, there are not many literature researching on the relationship between environmental matters and audit fee when certified public accountants audit financial report, failing to better examine the degree of certified public accountants focusing on environmental matters, therefore this paper is of great significance on this issue.This paper, on the first, summarizes opinions on environmental matters and audit fee from both abroad and domestic scholars as the theory basis. Then analyses the relationship between information related to environmental matters in financial report and audit fee from fiduciary environmental protection responsibility, certified public accountants responsibility for environmental matters concerned and insurancedeep pockets theory. Still taking the listed companies which fall in to "heavy pollution industries" category as our object of study, building models between Discharge Fee (DF), Government Environmental Subsidies (GES), Social Responsibility Report (SRR) and Audit Fee, Using descriptive statistics analysis, correlation analysis, multiple linear regression and robustness testing test research model. Finally coming to the conclusion and putting forward related suggestionsThe study conclusion show that:listed companies which belong to "heavy pollution industries" category Government Environmental Subsidies has a negative correlation with Audit Fee, which means that the Government Environmental Subsidies is more, companies environmental responsibility performing better, less judgment and estimation is given when certified public accountants are engaged in risk assessment process, audit cost is reduced, audit fee is less. Listed companies which belong to "heavy pollution industries" category Social Responsibility Report has a negative correlation with Audit Fee, meaning that companies disclosures the social responsibility report is helpful for stakeholders to understand companies social responsibility and environmental responsibility performance, less evidence is needed, reducing the impact on environmental matters and companies financial condition, less audit cost and less audit fee. Listed companies which belong to "heavy pollution industries" category Discharge Fee has no correlation with Audit Fee, which means Discharge Fee is not paid attention to by certified public accountants being engaged in financial report auditing, audit procedures and risk is not added, audit cost and audit fee is not increased.Given the findings of this paper, we recommended that:National accounting standards committee setting format to financial report, adding financial data about environmental matters’ diselosure,so as to Increase social supervision,urge the companies to better fulfill the environmental responsibility and sustainable development. At the same time, Certified Public Accountants Institute, public accountants firms internal should hold training course on knowledge about environment to enhance CPAs’ environmental awareness and professional skills and better fulfill the responsibility of the social supervision.