The Empirical Analysis On The Influence Of Analyst Follow On Audit Fee And Audit Quality

As an external oversight function, audit play an important role in the enterprise operation, such as Alleviating the agency conflicts, Reducing agency costs, Optimizing resource allocation structure. Audit fee as an important economic ties link between the accounting firm with the audited entity, the auditing is an important field of research. Foreign research on this field has been for a long time, the domestic research on audit fee began to the appearance of relevant provisions of the Commission in2001, which provides empirical data to support the study. So far, a large number of factors affecting audit fees scholars in China have done empirical research, mainly focus on the Listed Companies size and extent of the corporate governance of the audited entity, the audit scope, audit risk and audit environment, which Impact on audit fees. These results can not only prevent vicious competition in the industry, and promote the healthy and orderly development of the industry, but also to ensure the quality of CPA audit independence and improve the entire industry. Audit services as a special commodity, its quality will also directly affect the survival and long-term development of the CPA profession, a series of recent global financial fraud occurs and audit failures associated with this case, making the accounting firm reputation was seriously damaged, poor audit quality make the audited accounting information distortion, misleading stakeholders and damaging the rational allocation of social resources. So more and more scholars focus on the quality of the accounting firm’s audit, mastering what factors affect the quality Contribute on how to improve audit accounting firms audit quality and propose targeted policy recommendations.As an analyst with the accounting firm "third party" to follow up on the status of listed companies with external oversight role to play external governance effects. Domestic securities analyst research focused on aspects influencing factors, Analysts’ earnings forecasts and stock ratings, analysts follow impact on investor decision-making and capital markets and so on. After reading article on the basis of domestic and foreign scholars about analysts follow, audit fees and audit quality literature, Considering our unique starting conditions and institutional environment, combining theoretical analysis with empirical research methods, this paper research the relationship between analysts follow, audit fees and audit quality. First, from the analysis about the status of the domestic securities analysts conducted analysis on the basis of analysis of the factors analysts follow up and further analysis of the factors affecting audit fees and audit quality. On the basis of the relevant theoretical analysis on the proposed hypothesis of this paper, drawing on research scholars to determine the audit fees and audit quality metrics, it can be manipulated accruals to measure audit quality using the modified Jones model calculation, A share of non-financial listed companies as research samples, empirical analysis of the impact of analysts to follow on audit fees and audit quality, analysts found that analyst follow and audit fees were negatively correlated securities, analysts as information intermediaries capital markets, they follow up the collection of listed companies publicly listed company information and private information, writing research reports, provide listed companies’ earnings forecasts and stock ratings, stock trading recommendations to clients, which can effectively alleviate the listing information asymmetry between companies and users of information, plays the role of external oversight. On the other hand, in a multi-channel network coverage information interwoven, the more its true face will be more comprehensive, multi-angle to reveal and interpret the auditor to obtain audit evidence channel more convenient, efficient, and thus improve audit quality. The possibility of policies, laws and regulations of their environment audit activities also have a certain degree of influence on the auditing, a sound legal system, law enforcement and strong market, accounting firms turn into potential risks facing the loss of more large, the higher the probability that firms face legal action. Due to historical reasons, the degree of market-oriented form of an objective difference in various regions, on this basis, this paper further analyses the impact analyst follow and market process Cross-variable on audit fees and audit quality, this paper draw Xia Lijun and Fang Yiqiang research reference herein, the use of Fan Gang and other written about "China Market Index-regional market relative progress report" in the2007-2011regional "market process" to measure the audit quality, the higher the index, the higher the market process of listed companies. This study found that when a listed company in which the legal environment in the region is weak, analysts follow to play a stronger external oversight role. Finally, the paper concludes on the basis of empirical and propose targeted policy recommendations.