The Research On Audit Fees In Dahua Certified Public Accountants

Independent auditing plays an irreplaceable role in reducing agency costs,easing agency conflicts,optimizing resource allocation and maintaining the market order.However,the independent audit industry faces many difficulties in the process of the rapid development of the market economy and the improvement of the capital market.All troubles mainly come from the dual responsibility of the auditing.On the one hand,accounting firms have duty to protect the interests of the general public and improve the efficiency of resource allocation in the capital market.On the other hand,accounting firms need to gain profits and maintain their own survival,then even to promote the development of the industry.As important economic links between the accounting firms and the auditees,Audit fees can affect the function of the independent audit.At the same time,audit fees are important parts of audit process,they are major source of revenue for the local accounting firms.It is of great significance to promote the growth of the firm by researching audit fees.This paper analyzed the current situation of audit fees in Dahua Certified Public Accountants,and find that the audit fees were low,especially in pertain industries and areas.Low audit fees are not beneficial to the sustainable development when the firm and competitors were well-matched.Therefore,this paper analyzed the reasons for forming low audit fees in Dahua Certified Public Accountants by the influence factors of audit fees.Through the analysis,it was found that the firm didn't exploit its scale advantage,lacked the control of risk,failed to sort customers' scale and ignored the complexity of customer's activities.In addition,the firm didn't have obvious industry expertise.Under the influence of the market competition and regulatory policies,the fees are formed.Finally,this paper put forward some suggestions according to these factors.The firm can change the current situations in five ways.First of all,making full use of the firm's scale advantage to charge,and strengthening brand management;Secondly,increasing risk awareness and paying more attention on the audit risk;Thirdly,considering the customers' scale characteristics,and taking different pricing strategies for different clients;Fourthly,evaluating the complexity of the customer's business and to determine the impact on audit fees;In the end,developing industry expertise and improving the ability of auditors.At the same time,it's necessary to create better market environment and perfect the related charge standards.