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A Study Of The Impact Of The New Auditing Standards On Auditing Fee

Posted on:2015-09-10Degree:MasterType:Thesis
Country:ChinaCandidate:S S MengFull Text:PDF
GTID:2309330434952491Subject:Auditing
Abstract/Summary:PDF Full Text Request
Independent audit plays a vital role in the modern capital market, and the good operation of the audit market is conducive to capital market the optimal allocation of resources, promote capital market stability, and even the stability of the whole social economy. Powerful regulatory and the healthy and orderly operation of audit market, directly determines the independent audit is good enough to play the role. Therefore, if the state can stage a set of auditing standards to meet the needs of the new audit practice in China, and in line with international standards is particularly important.In China the newly revised auditing standards had began to implement since2012.The revision further improve the system of audit framework, and also the intelligibility and execution of the standard. The content of the new auditing standards is more comprehensive, the structure is more clear. The implementation of the new auditing standards is bound to bring a series of changes in the audit market.The implementation of the new auditing standards makes audit practice in our country face the opportunities and challenges at the same time, and also have an important influence on audit fees and audit quality. The new auditing standards more international, at the same time gradually adapted to the increasing audit quality in our country. The new auditing standards put forward higher request to certified public accountants’ professional ethics and skills. And this requires further reaction on the audit fees.Audit fee is paid to certified public accountants, as a reward for its professional auditing services. Certified public accountants audit fee includes three parts:the product cost, the expected loss cost, and the normal profits. And audit of western developed countries is hourly fee system, certified public accountants audit fee standards is the time spent on the audit projects. The hourly fee system make a unified standard for the measure of audit fees, and reduce the randomness and irrationality on audit fees.Since the first audit fee model had been constructed by Simunic in1980, many domestic and foreign scholars committed to the research of audit fee, and also reached some consensus about the influence factors of audit fees. Especially under the background of the new auditing standards, the new auditing standards put forward higher request to audit work. Certified public accountants audit fee will be a certain degree of increase. But if we can find hidden information through the interpretation of the new auditing standards, this is valuable for investors and regulators.This paper selects related data from a number of annual reports of the listed company from2009to2012, adds a system variable of new auditing standards into audit cost model, performs analysis such as descriptive statistics, correlation testing, multivariate regression analysis to the variation of audit fees both before and after the implementation of new auditing standards by using statistical analysis software, and painstakingly analyzes the influences brought by the implementation of the new auditing standards on audit fees.This paper’s research content mainly includes four parts:The first part is introduction and literature review. Mainly introduces the paper selected topic background, research significance and methods, and relevant literature review.The second part is theoretical analysis of the influence factors on audit fees. This section discusses relevant theories on audit market, also system analyzes the macro and micro factors influencing audit fees, and the relationship between the new auditing standards, the audit quality and audit fees.The third part is the research design and empirical analysis. First introduced this paper’s research hypothesis, sample selection and data sources, and then the multivariate regression analysis.The fourth part is research conclusion, put forward policy suggestions and limitations.Results of empirical as follows:(1)Research show a strong relevance between the implementation of new auditing standards and the variation of audit fees when analyzing samples from2009-2010and2011-2012.(2) Analysis of samples before the implementation (2009-2010) indicates that there is no relevance between the implementation of new auditing standards and the increase of audit fees; nonetheless analysis of samples after the implementation (2011-2012) reveals a strong relevance between the implementation of new auditing standards and the increase of audit fees. This proves the implementation of new audit standards contributes to the growth of audit fees.(3) The mentioned research also verifies the three main factors that affect audit fees are company size, the complexity of the audit and accounting firms business scale.(4) Company operating risk associated with the change of audit fee, but have no significant influence on audit fees.(5) Audit opinion type have no significant influence on audit fees.The innovation of this article reflects on the research content. There were more literature study on auditing standards in2007, including research on the effects of auditing standards on audit opinion, audit quality and audit risk. There are many scholars study on the effect of the implementation of new auditing standards in2012, but has not found a research literature on the impact of the new auditing standards on audit fees. This paper compared with before and after the implementation of new auditing standards, analysis from the theory and empirical test the implementation of the new auditing standards on audit fees.To provide the reference and policy suggestions for the implementation of the guidelines for the future.There are certain difficulties on analyzing which factors influence the audit cost for the changes of the new auditing standards, due to the understanding of the new auditing standards is not comprehensive and in-depth, and time is not long on the implementation of new auditing standards in2012, its influence has not been fully reflected in the practice.
Keywords/Search Tags:The new auditing standards, Audit fees, The empirical research
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