The Study Of The Influence From Audit Fee On Audit Quality

With the development of China's capital market,the independence of audit is becoming more and more important since it determines whether the social economy can have a good order.As the compensation of audit service,audit fee reflects the cost of the resources which auditors have cost.This means that the higher the cost,the higher audit resources have put,and then the higher the audit quality.However,audit service is not general goods,so higher audit fee may result in the economic dependence of auditors to their audit clients,which will affect the audit independence and reduce audit quality.In order to verify the relationship between audit fee and audit quality in China's capital market,the paper chooses the listed companies' data of Shanghai and Shenzhen exchange between 2010 and 2013 as sample,and uses the modified Jones model to estimate the discretionary accruals that can measure audit quality.By controlling “the organization form of firm”,“big four”,“net interest rate of the total assets” of the auditees,“assets to cash flow”,“sales growth”,the paper sets up a multiple regression model to verify the relationship between audit fee and audit quality and carries a robustness test on the result.The study found that: in the whole sample,there is a significant positive correlation between audit fee and audit quality;in the profitable sample,there is also a significant positive correlation;in the unprofitable sample,there is no significant positive correlation;in the abnormal audit fee sample,there is no significant positive correlation.