Research On Financial Restatement And Audit Pricing

The financial report of public companies audited by Certified Public Accountant,accounting firms audit as a kind of external audit is an effective way to keep the capital market in better order, in market transactions,certified public accountants audit activities completed by charging the audit fee.Audit pricing is that the audit services of supply and demand both sides to reach a price on the audit service and is important economic ties between the auditees and accounting firms.However, financial report audited by Certified Public Accountant still occur financial restatement, the current world financial restatement is a frequent phenomenon.Financial restatement is refers to the accounting errors correction,that is,financial reporting in the recognition,measurement,recording,reporting errors that exist in the process,including generally accepted accounting principles applied error,calculation wrong,negligence or misjudgment existing the financial report.Financial restatements reflect that listed companies did not disclosure accounting information standardly and formality.The occurrence of financial restatements increased the auditees financial risk, from the perspective of certified public accountants audit the risk increases,based on Risk-Oriented auditing,audit risk will affect the audit fees.So,research audit pricing can study Certified Public Accountant reaction on financial restatement.On the research methods and ideas,this paper adopts mainly empirical study combind normative research.The text is divided into five chapters,the first chapter introduces the research purpose and significance, domestic and foreign related literature review;The second chapter summarizes the theory foundation of financial restatement and audit pricing to provides the theoretical support for empirical research;The third chapter analyzes the relevance of financial restatement and audit pricing,lead to the presumption of both correlation empirical research;The fourth chapter is the empirical part of this article,with A2007-2011annual reports released supplement and correction announcements of a-share companies as the empirical sample, through multiple linear regression,the relationship of financial restatement and audit pricing and whether this relationship with restatement types are different.Research has shown that financial restatement company audit pricing is higher than not happen restatement of the company,including core restatement,passive restatement,repeat restatement are more significant impact on audit pricing in nocore restatement,nopassive restatement, norepeat restatement.The fifth chapter summarizes this paper’s research conclusion and revelation, puts forward the research deficiency and the future research direction.