Research On The Influence Of Real Earnings Management On Auditing Fees

Earnings management issues are always an important topic in the field of financial accounting.Earnings management includes accrued earnings management and real earnings management.Real earnings management is the manipulation of the actual business activities.Due to the concealment of its means of operation,real earnings management is more and more favored by the management of listed companies in strictly realistic conditions of supervising.However,real earnings management will lead to an increase in business risk.So,as a third party,can the auditor identify the operational risk and reflect it on the audit fee decision? In addition,under the background of our special system,most of our listed companies are controlled by the government,there is also a difference in the risks faced by state-owned enterprises and non-state enterprises due to different levels of supervision.Whether the auditor distinguishes between the information contained in the real earnings management of the listed company with different property rights? In view of this,this paper studies the impact of the real earnings management of listed companies on the audit fees,and further distinguishes the nature of property rights,this paper studies the differences of the effects of different property rights.This paper firstly reviewed the literature.Secondly,it analyzes the mechanism of the effect of real earnings management on audit fees and the mechanism of the property rights on the correlation between the two.On this basis,the corresponding assumptions are put forward.Thirdly,by constructing the measurement index and model,and selecting the annual data of Shanghai and Shenzhen A-share listed companies from 2011 to 2015 as the sample observations,this paper examines the impact of real earnings management on the audit fees of listed companies in China.And further according to the nature of property rights,the sample is divided into state-owned enterprise group and non-state-owned enterprise group,and conduct multiple linear regression respectively,which is to compare the difference between the real earnings management of the listed companies with different property rights and the audit fees.Finally,this paper draws the following conclusions: First,the real earnings management has a significant positive impact on the audit fees,that is,the greater the degree of earnings management by the listed company through real activities,the higher the audit fee.Second,the auditor distinguishes the information contained in the real earnings management of the listed companies with different property rights,that is,compared with non-state-owned enterprises,the real earning management of state-owned enterprises has a more significant impact on audit fees.