The Research Of Regional Characteristics Impact On Audit Fee

Audit fees as an important part of the audit market, not only reflects the relationship betweenmarket supply and demand, but also the quality of audit services and auditor independence. Auditfees become so widespread concern and research issues for audit academia. China SecuritiesRegulatory Commission issued a document requiring listed companies to disclose remunerationpaid to the accounting firm in its annual report the year at2001. This creates conditions forempirical research of audit fees in China. Since then, Chinese theoretical system of audit feesgradually built up.The academic found that our audit market presence of its own characteristics. The RegionalCharacteristics baceing on the audit market segmentation is more prominent.2010the AICPAissued "China’s CPA industry development plan (2011-2015)" proposed to deepen the firm strongerand bigger strategy, cultivating practice network, service capabilities, revenue size and marketimpact of large-scale international standards audit firm; industry practitioners to further improve theenvironment, promote breaking the professional monopoly and market barriers. In this context, thepaper selected years from2010to2012A-share market listed companies as samples, and pressregistration provinces grouped, combined audit pricing theory and other related theories, usingmultiple linear regression method, research the affecting of regional factors to audit fees.Through extensive reading and summarizing relevant literature scholars at home and abroad,combined with the audit pricing theory, market supply and demand theory, agency theory andsignaling theory, this paper separately from the cost of the audit, the audit market supply anddemand, the audit firm reputation risk premium and a premium of four put forward a hypothesis. Byassuming the empirical analysis and concluded:(1) audit fees of listed companies and theirregistered area wage levels positively correlated;(2) audit fees of listed companies listed companywith its registered number of areas negatively correlated;(3) of listed companies audit fees regionalaccounting firms registered with the level of development positively correlated (4) audit fees oflisted companies and their registered legal environment positively related areas.The innovation of this article on our audit fees regional factors were more comprehensive study.First, linking the market supply and demand theory with China’s audit market segmentation, weselected the number of listed companies in areas as reflected in the audit market supply and demand.Second，the firm’s reputation premium research was extended to the past for the international "Big4" or national "Top10" research firm expanded study area firms overall level of development in thearea of audit fees of listed companies. Finally, this paper put forward some policy recommendations: (1) to guide and develop the market demand for high quality audit services;(2) to further improvethe legal environment, strengthen law enforcement, regulatory, and the punishment;(3) thegovernment needs to reduce audit administrative intervention in the market, audit firms need toimprove their own independence.