Research Of Relationship Between E-commerce Listed Companies' Audit Risk And Audit Fee

It is an indisputable fact that audit risk affects audit pricing.Many foreign studies have indicated that the level of audit fees is related to the size of audit risk.However,many domestic research shows that the accounting firms consider audit risk relatively less when determining the audit costs;on the other hand,there have been a large number of litigation claims in the audit market.So audit risk how to reflect in audit pricing,then developing a reasonable price of audit services,maintaining the independence of the CPA,audit has been a pressing concern that the role of the audit can play for the audit sector of the market.This paper expounds the theory of principal-agent,the theory of information transmission and insurance theory,discusses the application of these three theories in audit risk and audit pricing,expounds the business process and characteristics of the electronic Business Company,determining the suitable-modern risk oriented model for the electronic Business Company.Discuss the risk that the electronic commerce enterprise may face and the kinds of audit risk.Subdividing the risk of material misstatement into corporate governance risk,management risk,financial risk and internal control risk,according to the mode of modern risk oriented audit risk model.Discuss the audit pricing mechanism within section risk.By reviewing the previous literature,this paper puts forward the hypothesis,and builds a multiple regression model of audit risk and audit pricing.Collecting the indexes the explanatory variables of corporate governance risk,management risk,financial risk,internal control risk and detection risk of e-commerce listed companies from 2012 to 2014,using multiple regression model for empirical research.Empirical results show that: financial risk and audit pricing of the electronic commerce listed companies have a significant relationship,but the direction is not clear.The internal control quality and audit pricing is negative correlation,check risk and audit pricing performance is positive correlation,the corporate governance risk,business risk and audit pricing are uncorrelated.According to the empirical results,the regulators should improve information disclosure mechanism of the listed company and promote the brand construction of our accounting firms actively.Accounting firms in China should develop market-oriented price of audit services,and the listed company shall improve the quality of internal control comprehensively,in order to enhance in the audit pricing in bargaining power,regulate the price of audit services and reduce the audit risk.