The Research On Effect Of The Audit Fees By Governance Structure Of Company

At present, there are serious “Low Ball” and audit opinions phenomenon in China’s certified public accountants audit market. Different regions and different firms existvary with the charge of different enterprises. Audit fee charged problems have a serious constraint to the development of independent audit services market, have attractedattention to the theory and the practice, have been widely studied now. Meanwhile, the “separation of the rights to own and to run” of the modern enterprise have brought principal-agent problems which caused the enterprise internal information asymmetry,goals of trustors and trustees are inconsistent. Independent audit activities are essential.Previous research indicates that many factors affect the audit fees, such as scale of the enterprise, complexity of the company’s business and audit firm size.Firstly, this paper summarizes and analyzes the achievements of previous scholarson the factors impact on the audit fee and find out the research breakthrough. Secondly, divides the corporate governance structure into ownership structure, board structureand management structure in accordance with its characteristics and composition. Thensubdivided each part into ownership concentration, nature of equity, board independence, whether or not establish the committee on public accounts and management incentive mechanism, respectively, to study the influence on audit fees. This paper adopts theoretical analysis with empirical investigation. Select the theory of corporate governance,corporate governance characteristics, the theory of audit fee and the audit risk theoryas a theoretical analysis and the research basis of the hypothesis and empirical. Thispaper use the listed companies which accounting for a large proportion of the manufacturing sector in2012with a representative of the Shenzhen and Shanghai as the research sample data using Excel and Stata statistical software for data processing and multivariate regression analysis. The results showed that manufacturing in the impact of the situation on the corporate governance structure of audit fees, it has differ from theprevious studies scholars throughout the listed companies. This illustrates there are differences in the different sectors of corporate governance on the impact of the mechanism for audit fees, it should be researched and analysed separately, it opens up a newdirection for the future research of audit fees. According to industry segment audit feecharging standards, provides the basis and the reference for the relevant departments.Also, provides a reference for further improvement of corporate governance structure.