Research On Influence Of Heterogeneity Of Actual Controllers On Audit Fees

Since the middle of 1990s,the auditing mode developed into Risk-oriented Auditing Model,which requires the auditors' knowledge of the entity's business,including the knowledge of the actual controller's characteristic and actions.Considering the factors of both audit fees and audit situations contribute to the audit fees,many scholars study on the relationship between auditing and corporate governance through audit fees.However,most scholars conduct their researches from the perspective of the management governance rather than the actual controllers.As a result,the majority of existing researches ignore the fact that there are substantial numbers of the companies whose actual controllers supervise and control all the company resources in China.Therefore,one of the great significances of this paper is that the writing stands on the view of the actual controllers.First,on the basis of referring to extensive literatures,we review domestic and foreign literature on the key concepts of heterogeneity,audit fees and the correlation between them.Second,based on the agent theory,upper echelons theory and Risk-oriented Auditing theory,the paper theoretically analyzed the influence of the heterogeneity of actual controllers to the audit fees,providing a theoretical basis for assumptions.Besides,the paper verifies six hypothesis in the empirical aspect,which include the actual controller's age,gender,position,risk preference(uses the index of appetite for risk to measure),right of abode and the change of actual controller having an impact on the audit fees.And then the paper tests hypothesis from descriptive statistics,correlation analysis,multiple linear regression analyses and robustness tests.Moreover,this paper confirms the effect of actual controllers' alteration on audit fees according to analyzing the case of Gosun Technology Company.Finally,the paper gets conclusions as follows:(1)The actual controller take a crucial position of the company will reduce the audit fees.(2)The turnover of the actual controller will increase the audit fees.(3)If the actual controller is a risk lover,the audit fee will rise.(4)Those factors such as the actual controller's age,gender and right of abode have no significant effect on the audit fees.In addition,audit fees rule and disclosure of the information of actual controllers are proposed from the perspective of enterprises,accounting firms and government.