Research On The Impact Of Related-party Transactions On Audit Fees In China's Listed Companies

As China's capital market structure and business model become more and more complex,related party transactions have become a link strengthening the relation between enterprises and others in order to adapt to the fierce competition of the capital market.On the one hand,the mutual cooperation of the related party promote operation of transactions efficiently and orderly.It not only can reduce the transaction risks,but economize transaction costs.On the other hand,related party transactions are a form of the embroidery of financial statements and gaining benefits expression for listed companies.In recent years,the frequent occurrence of fraud in related party transactions has become a key object of academic circle's studies.We must consider the question whether this transaction can increase the audit risk of CPA and then affect the audit fees of accounting firms.This article is based on the features of the related party transaction to analysis the impact of related party transactions on audit fees.It's desirable to further improve auditing work efficiency,which has practical significance in controlling auditing risks and decreasing auditing costs.Firstly,this paper analyzed the present situation of related party relationship,related party transaction and audit fees.Then we selected the Shanghai A shares of 5425 listed companies as samples,selected the data from 2009 to 2015,using multiple regression analysis method to analyze the relationship between the related party transactions and audit fees.The main conclusions are as follows:related party transactions of listed companies showed an upward trend year by year.It increased the difficulty of auditors' work.Related party transactions increased in audit fees.Related party transactions increased in audit risks.Related party transactions increased in the process of audit fees that audit risk played a part role of the mediating effect.Different types of transactions had different effects on audit fees:executive compensations and capital transactions had the greatest impact on audit fees.Finally,based on the foregoing analysis we suggested that the government department,the audited units and the accounting firms should work together.The Government departments should refine the relevant provisions of related party transactions,increase supervision and punishment.CPA should increase the intensity of the implementation of the audit.It makes the audit fees of accounting firms more reasonable in the new norm by identifying and assessing audit risk.The audited units shall fully cooperate with the audit work to strengthen the company's internal control.In order to provide the basis for the auditors to contorl audit risk and audit pricing in practice.