| Audit service as a kind of service should be paid, the side which accepts theservice should pay for the audit fees to the accounting firm, and the audit fee directlyaffects the orderly development of audit market and professional behavior of certifiedpublic accountants，it’s very important to understand the characteristics of theproduction of audit services to ensure the audit market can develop healthily and thepublic can receive the audit report with high quality. So for a long time, research onaudit fees is a very important field both in the academic and practical research. Sincethe1980s western scholars have begun to use empirical method to research what arethe factors that affect the audit fees; and about the empirical study of audit fees in ourcountry started in2001, a regulation was issued, which required that public companiesshould disclose the audit fees they pay for CPA. However, the majority ofsino-foreign scholars in the study on audit fees haven’t considered the factors ofcompany’s Internal Control. The reason may be related to the availability of internalcontrol data. So this paper is based on some regulation background, focus on internalcontrol information disclosure of listed companies, start the further study on theinfluence factors of audit fees.In order to make the internal control of listed companies in our country better, therelated department issued The enterprise internal control basic standard and Thesupporting guidelines for enterprise internal control in2008and2010, makereference to listed companies in China. These two regulations have made the requeston internal control information disclosure of listed companies. Since then, Chinesescholars can obtain more and exacter information of internal control informationdisclosure. Based on this background, this paper chooses the data of companies listedin Shanghai Stock Exchange A-market during2010and2011as an sample. Thispaper studies whether information disclosure of internal control and audit fees isrelevant from the following three aspects: internal control self-evaluation report,internal control identification report and internal control defects. In addition, thispaper selected the10control variables. The empirical results show that there is asignificant positive correlation between the audit fees and the disclosure of internalcontrol identification report. But there are no significant correlations between theaudit fees and the disclosure of internal control self-evaluation report and internal control defects. The result shows that in the audit market of China, audit cost and riskinfluence the audit fees, and the auditors pay more attention on the whether they needto provide internal control identification report, other than the disclosure of internalcontrol self-evaluation report and internal control defects. At the same time, we findthat the listed company scale, complexity and whether the auditors big four, arepositively and significantly related with audit fees, the audit opinion types isnegatively and significantly related with audit fees, the factors above are the mainfactors affecting the audit fees. The number of board meeting has a huge differencebetween Special Treatment Company and normal ones, this factor is positively andsignificantly related with audit fees among ST company，but there is no significantcorrelation between these two factors among normal companies. The top fiveshareholders’ share ratio, the rate of independent directors to the size of the Board ofdirectors, the return on equity (ROE), asset-liability ratio and changing the auditors donot reflect significant correlation with audit fees.Through the empirical research, this paper got some conclusions above, theseconclusions provide a basis for audit pricing further, but also provide effectiveinformation for related departments to manage and standardize the development of theaudit industry. At last according to the empirical results above, this paper puts forwardrelevant policy Suggestions. |
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