An Empirical Study On The Material Misstatement Risk And Audit Pricing Of The Agricultural Listed Companies

For a long time,due to the diversification of trading objects,the lack of transaction,the vulnerability of biological assets to natural disasters and the difficulty of verification,the audit risk has not been well controlled,so that the financial fraud cases of Chinese agricultural listed companies emerge in endlessly.Whether auditors can accurately identify the material misstatement risk of agricultural listed companies,and taking this as the center,carry out a comprehensive and effective audit procedure,which will have a significant impact on audit quality,thereby affecting the audit pricing.The research on the correlation between the material misstatement risk of agricultural listed company and audit pricing can provide theoretical guidance for our current audit specific operation and inspect the implementation degree of agricultural listed companies and test its validity.Therefore,the study of both has important practical significance.Based on the definition of material misstatement risk and the characteristics of agricultural listed companies,this dissertation divides the risk of material misstatement into two levels: report level risk and identified level risk.Based on the data of agricultural listed companies from 2009 to 2015,this dissertation establishes an empirical model to study the impact of various risk factors on audit pricing.The main conclusions are as follows:(1)The ownership concentration,the occurrence of related party transactions,the current ratio,the return on total assets,the asset-liability ratio,the ratio of receivables to total assets,the ratio of inventory to total assets and audit pricing are significant correlated.The current ratio,the total asset return rate are negatively correlated with the audit expense ratio,and the other independent variables are positively correlated with the audit expense ratio.(2)The material misstatement risk is positively related to audit pricing,and the greater the material misstatement risk,the higher the audit pricing.(3)The audit market in our country is relatively healthy,and the modern risk oriented audit has been applied to the audit practice in China.It is suggested that we should pay more attention to the related transaction of agricultural listed companies,actively explore the accounting methods of biological assets,strengthen the disclosure of audit fees,and establish a reasonable audit pricing standard system.