An Empirical Study Of Relationship Between Real Earnings Management And Audit Fee

Audit fee represents the supply and demand in both sides reach a certain product priceafter consultation in accordance with the standards. Audit price not only will affect the auditquality, but also can affect the audit independence, and have a great impact on furthercompleting of audit fee institutionalization. Certified public accountants use audit services canprovide guarantee the independence of the financial report, and to optimize the distribution ofthe capital market and to protect the healthy development of the market economy, it has avery important guiding significance.The scope of the research on the influence factors of audit fees gradually expand inrecent years at home and aboard, no longer just stay on the past previous model of audit fees,but extend to many related fields, and surplus management has become one of the mostimportant aspects of the influence factors. Previous studies tend to consider the accrued itemsearnings management has a influence on audit fees, but in recent research has shown that thelisted companies use real activities manipulation to achieve the purpose of earningsmanagement, and real earnings management behavior will have a negative effect inenterprise’s cash flow in the long run, and also can reduce the value of the enterprise, at thesame time it has strong concealment will increase audit efforts, the audit fee will also change.But few people have done an empirical study on relationship between them from the angle ofreal activity, the real earnings management has a degree of influence on audit fees need totest.Based on the above theory in this paper, to explore the influence on audit fees from theangle of real earnings management activities. This paper will do research design in threeaspects. First, the overall strength of real earnings management influence on audit fees;Second, from the real earnings management in three aspects, namely the manipulation of sales,production control, cuts the costs have a influence on audit fees; Third, study the real earningsmanagement of the influence on the audit fees by by "top ten" and "non-top ten” certifiedpublic accountants. This article hopes that through analysis and research can combine internalmanagement and external supervision organic and provide a new direction on the research hecorrelation of earnings management and audit fees.