The Study On The Effect Of Legal Risks Of Listed Companies On Audit Fees And Audit Opinions

?2015 Chinese Legal Risk Index Report?discloses that the infractions,litigation cases in 2014 increase nearly 200%and 150%respectively.Compliance operating pressure in our listed companys is increasing obviously.The socialist market economy is legal economy.Specification of all aspects of social and economic life is gradually established.As the economic activities are more and more frequent and complex,listed companies are facing rising legal risk.Not all the legal risks are associated with financial risk,but most of the legal risks will have direct or indirect economic consequences.False statements cases of listed companies in recent years further clarify and standardize the auditor's responsibility.So the legal risks of listed companies bring independent auditors a higher risk.From 2007 our country began to implement risk-oriented audit mode,whether the risk assessment can modify audit risk according to the legal risks?Listed companies lacking the legal consciousness of risk prevention and control whether affect the audit fees and audit opinions?Based on 2007-2014 a-share capital markets experience data,the article examines whether the legal risks of listed companies influence audit fees and audit opinions.The study found that:first,more higher the legal risks of listed companies,more higher the cost of audit fees,more probability receive non-standard audit opinions.Prove that the auditor of the high legal risk enterprises invested more audit resources,more cautious when given the auditing opinions.Second,compared with domestic firms,the big four audit fees did not show significant positive correlation.Legal risk is not the main influencing factors.This paper not only enriches the related literature on audit fees,audit opinions and academic research of legal risk,but also has policy implications for the improvement of the risk response capacity in listed companies.