Study On Related Assets Transaction Of Listed Company And Audit Fees

In recent years, asset activities of listed companies on the China’s securities market arerapidly development. More and more listed companies start to trading assets to optimizing theasset structure or improving corporate performance. Related assets transaction account for asignificant proportion of assets transactions. On the one hand, because of the specialrelationship between the related parties makes the transactions reduce the transaction costsand improve the company’s competitiveness. This advantage makes the assets of relatedparty’s transactions are common between the listed companies. On the other hand, because ofthe particularity of the related assets transactions, listed companies in order to increase thevalue of the company or reverse the suspension of listing situation or manipulate profits toachieve a unique purpose, and management authorities take advantage of related assetstransactions to manipulate profits lead the auditor’s risk increased. Under these circumstances,whether the assets of the above related party transactions characteristics will impact audit fees?When the listed companies trade assets of the related party transactions, how to consider theauditor audit fees?There, after considering the desirability of data, we selected the asset pricing principlesand Total assets of the related assets transactions to examine their impact on audit fees. Afterselecting the samples of the related assets transactions of listed companies for the years2010-2011, we studied impacting of the related assets and its character on the audit fees. Theresult indicates that the assets listed company and its related parties transactions will increasein audit fees. Fair and negotiate pricing principles in the assets of the related partytransactions in increased audit fees. On another hand, the total size of assets of its relatedparty transactions may affect the audit fees. In view of this, we carry out some suggestions onthe audit fees, in order to provide the basis for the auditors audit pricing.