Research On Characteristics Of Auditor Vertical Dyads To The Ratio Of Audit Fee To Asset

Audit fees, in the audit market as an important economic link between the audit services supplier and demander, become the focus of both sides and also an important research object. The "No.6 Questions and Answers on the Regulations of Information Disclosure of the Company Publicly Insuring Securities--the Payment of Accounting Firms and its Disclosure" promulgated by China Securities Regulatory Commission on December 24,2001 study provided convenience for scholars of researching audit fees. With the research furthering, the focus of audit theory and audit practices has developed from the accounting firms to the auditors. As a direct supplier of audit services and the direct handler of audit quality, the effect of auditors’personal characteristics to the audit quality and audit fees has drew more attention.Through summarizing and generalizing the study achievements before, on the basis of the analysis of vertical upper echelons theory and related theoretical, by taking two CPA signing on an audit report as an audit team, because of the team’s organizational structure and decision-making processes are similar to the TMT, so this paper uses the upper echelons theory to the study of the field of audit.In empirical research, based on the data of CSMAR and the web site of CICPA, the paper has done the relevant analysis and regression analysis of the relationship between the auditors’personal characteristics vertical dyads in an audit team and the ratio of audit fee to asset. The demographic characteristics differences (sex, age, education and years of career) between two CPA in an audit team signing on an audit report referred as the corresponding vertical differences (gender vertical difference, age vertical difference, education vertical difference, career year vertical difference), the paper discussed the impact of sex, age, education and years of career on the ratio of audit fee to asset. The study finds that there is no significant linear relationship between the gender vertical difference and the ratio of audit fee to asset; the age vertical difference, education vertical difference and career year vertical difference have showed a significant positive correlation to the ratio of audit fee to asset, namely that the bigger the difference of age, education and career year is, the higher the ratio of audit fee to asset, which means a higher audit fee in the same asset object.