The Research Of The Influence Between Abnormal Audit Fees And Audit Quality

With the continuous development of the market economy,regardless of the national regulatory authorities,investors,or the public,these stakeholders in the investment securities and other investment decisions,often refer to professional advice from the independent agency,such as accounting firms,securities firms or law office.For accounting firms,they audit the financial statements of A-share listed companies and issue appropriate audit opinions,on the basis of adequate and appropriate audit evidence.Stakeholders trust the financial statement audited by auditors when they analyze the financial data of A-share listed companies.For the audit industry development,increasing demand will undoubtedly bring more opportunities,but the high expectation to the auditors raises a higher challenge.Especially in recent years,a series of financial fraud and audit failure cases of domestic and foreign listed companies,not only investors suffering huge economic losses,but also the public greatly reducing the trust of the audit industry,the quality of audit service has been queried by the public.The audit quality has been a hot topic in the theory field and practice at domestic and abroad.The audit fee has aroused the concern of scholars in the study of factors influencing the audit quality.Throughout the development of Chinese securities market,listed companies exist motives and behavior of purchasing audit opinion for various reasons,and accounting firms use the "low price strategy" to survive in the fierce market competition,so abnormal phenomenon of the audit market and audit fees are closely related.In the December 2014,Development and Reform Commission of China issued "the notice on the liberalization of some of the services price",clearly open prices of seven service had competitive conditions,including accounting services.So,after the notice issued,is there abnormal audit fees? Does the abnormal audit fees affects the audit quality? Further,to distinguish the positive and negative direction of abnormal audit fees,does the abnormal audit fees in different directions have impact on the audit quality? How should we deal with the impact of abnormal audit fees on audit quality? Through studying the above issues,the purpose of this paper is to deepen the understanding of the auditing industry by the stakeholders,providing reference for judgingthe audit quality.On the other hand,the supervisory authority can find out the relationship between the audit fees and audit quality,whether to buy the audit opinion,or the accounting firms to have unreasonable behavior such as low-cost acquisition,thereby the regulatory authorities provide scientific and reasonable standard of the audit fees and information disclosure rules,to promote Chinese audit industry to develop healthily and sustainably.The main content of this paper includes the following six chapters:The chapter 1 introduces the research background of this paper,on the basis of it presenting the issues to be studied,explains the purpose and significance of this study,introduces the main content and the research framework ? the research ideas and research methods.The chapter 2,on the basis of clarifying the problems to be studied,this paper combs the domestic and foreign literatures,about the relationship between the audit fees and the audit quality,the relationship between the abnormal audit fees and the audit quality,and provides a theoretical basis for the following research methods and empirical models.The chapter 3 analyzes the status quo of the audit market in our country,and analyzes the theory of principal-agent theory,which is helpful for the understanding the concept of audit fees and the relationship between the abnormal audit fees and the audit quality.On the basis of theoretical analysis,the three research hypotheses of this paper are proposed.The chapter 4 studies the design,introduces the sample data sources and the selection of sample,designs the explanatory variables and control variables,and chooses the alternative indicators and measurement methods of the audit quality and abnormal audit fees,and constructs the regression models between the abnormal audit fees and audit quality.The chapter 5 uses EXCEL and SPSS to study descriptive statistics and correlation analysis,uses STATA to carry out multiple regression on the main model and analyze the influence of related variables.The results of multiple regression testify the hypothesis 1 and hypothesis 2,hypothesis 3 to be verified.The chapter 6 puts forward the conclusion of this paper:(1)the higher the positive abnormal audit fees is,the worse the audit quality.(2)the lower the negative abnormal audit fees,the greater damage of the audit quality.(3)the alteration of accounting firm affects the audit quality,but the adjustment of the relationship between abnormal audit fees and audit quality is not significant.Finally,according to the conclusion of this paper,this paper puts forward the relevant policy suggestions,such as improving disclosure rules of audit fees in annual reports of Ashare listed companies,changing the way of appointing auditing firms,the regulatoryauthorities controlling the competitive degree of the audit market reasonably,increasing the penalties for unfair disclosure of CPA and accounting firms.Finally,the paper points out the shortcomings in the research process and the future research prospects.