Under The Background Of Price Controls Audit Pricing With Audit Quality Empirical Research

The audit was to make the company’s financial data of listed real and accurate disclosed a system specification, which in large part to ensure that the interests of users of financial statements of listed companies. In a healthy market in audit, audit pricing by market supply and demand sides should reach a balanced according to their needs, in order to ensure audit quality. However, China’s audit market is still in the stage of economic transformation, audit pricing mainly rely on government to implement mandatory minimum price guide, the lack of spontaneity audit client demand for audit, this situation determines the way of China’s audit market competition is mainly price competition rather than quality competition. In order to survive and develop, some accounting firms in order to attract a vicious reduce audit pricing audit clients, seriously affecting the independence of the audit, audit quality can not be guaranteed.January 2010 Joint National Development and Reform Commission and the Ministry of Finance issued a "CPA fee management approach", proposed by the government price controls means to enhance audit pricing, thereby increasing the overall audit quality audit market. In this paper, the effect of this approach tolls empirical research, combined with the year 2008-2013 for all listed companies’ financial data and audit information, audit pricing and audit quality multivariate regression analysis. At the same time, depending on the size of the accounting firm, the country is divided into four major international accounting firm and non-four firms and the top ten firms and non-Ten firms, to further explore the different scale of price controls audited pricing and audit quality.In this thesis, the regression results show that government price controls to enhance audit pricing, and overall audit quality audit market has not been significantly improved. The different sizes of the price controls the sensitivity of firms there are significant differences, in terms of the smaller firms compared to the larger accounting firms under government price controls, audit pricing to improve audit quality lead to significantly improved. The results show that government price controls have limitations, the need to further improve the audit market governance system, culture audit clients for high quality audit of spontaneous demand, and constantly optimize the market structure, increase market concentration, encourage orderly competition.