Research On The Relationship Between Accounting Estimate And Audit Fees

Audit fee is an important factor in the audit market,and its level plays a vital role in the independence of audit activities and audit quality.Audit fee is complex and is affected by many factors.Due to its importance and complexity,audit fee has always been one of the focuses in the field of auditing theory and practice.Audit fee is mainly composed of two parts: audit cost and expected loss compensation.The risk oriented audit mode emphasizes the judgment of risk,audit process analysis,evaluation and audit the allocation of resources,for those with high uncertainty and high risk areas,auditors need to devote more time and energy to be highly concerned,which means that the audit resource input,the increase of audit fee.Involving a large number of uncertain factors of enterprise financial information in accounting estimate information,on the one hand the enterprise and auditors are difficult to determine the exact amount and information,on the other hand,is vulnerable to manipulation to regulate the management of financial information,resulting in financial fraud.These will increase the difficulty of auditor audit,but also inevitably increase the risk of audit failure.Auditors must invest more audit resources,increase audit fee in order to make the financial information more fair.And for the risk that can not be reduced through the audit process,the auditor will also increase the audit fee to compensate for the cost of the audit risk of failure.Thus,as an important part of the company's financial information,accounting information will increase the audit difficulty,increase the audit risk,leading to the rise of audit fee.Based on the research of A listed company in China 2013-2015 the latest data,the empirical data to explore the impact of information on accounting estimates of audit fees of financial information,and further divided into accounting estimates on the audit fees with effect of two categories of accounting estimates.Research results show that the financial information of Listed Companies in accounting estimates is positively related to information and audit fees;further study found that lead to increased profit accounting estimates than lead to reduced profits estimate of accounting information influence on audit fees is more significant.