Research On Relevance Of Listed Company’s Risk And Audit Fees In Our Country

Audit fees have been one of the issues of concern audit theorists. Because the auditfees not only directly affect the independence of the audit and audit quality, but alsoindirectly affect the economic behavior of the users of the financial report. In addition,with the further development of modern risk-oriented audit, the audit fees model has alsoundergone some changes. Modern risk-oriented audit accounting firm audit the economicenvironment in which the unit is placed, from the external environment of the auditedentity, business activities, internal control system and the operation of all aspects ofanalysis to assess the level of audit risk, to identify high-risk aspects and departments, inorder to focus on audit. For those high-risk areas, accounting firms need invest moreaudit resources, audit fees will also increase. Thus, there is a certain correlation betweencompany ’ s risk and audit fees.Considering the COSO internal control risk management auditing standardspromulgated by the report and the2004China Institute of Internal Audit on the basis ofthe boss company risks are divided into external risks, financial risks and operationalrisks,2011A-share listed companies in China as research samples, the establishment ofaudit fees and listed companies risk model using linear regression analysis method, thepaper examines the impact of different types of risk on audit fees. Results of empiricalresearch conclusions are as follows:(1) Superiors external risks and audit fees is notrelevant;(2) listed company’s financial risk is significantly associated with audit fees,Asset-liability ratio, the rate of bad debt losses and audit rates are positively correlated,the current ratio, accounts receivable turnover, sales margin and audit rates are negativelycorrelated;(3) The operational risks of the listed companies in China has a greater impacton the audit fees, Corporate governance risk is significantly associated with audit fees,Ownership concentration, board size, the scale of the Supervisory Committee, theproportion of independent directors and audit rates significantly negatively correlated.Based on the above results, further analysis of the reasons and put forward thecorresponding policies and recommendations.