Corporate Governance Structure,External Governance Environment And Audit Pricing

With the development of market economy,the organizational structure,trading methods and economic relations of corporation have become more and more complicated.The CPA collects audit evidence in the course of auditing,thus increasing the difficulty of making professional judgments.High-quality audit services require adequate investment of audit resources,and the level of audit pricing directly affects the accounting firm's economic resources.There are many factors that influence the pricing of auditing.The existing researches mainly focus on the characteristics of audited entities and the characteristics of accounting firms.First of all,based on the previous research results,this paper studies the impact of corporate governance structure on audit pricing from the perspective of listed companies.Then,this article considers the differences of the external governance environment of the listed companies in our country and studies the influence of different external governance environment on the audit pricing.On the basis of this,this paper also incorporates the external governance environment into the research framework of the impact of corporate governance structure on audit pricing,and further studies the impact of the interaction between corporate governance structure and external governance environment on audit pricing.In this paper,we take the A-share listed companies in Shanghai and Shenzhen stock markets from 2012 to 2016 as a sample,and use the principal component analysis to construct a comprehensive governance index of corporate governance to measure the level of corporate governance in listed companies.For external governance environment,this article uses the market-oriented process to measure the total index.In the empirical test,this article uses descriptive statistics,correlation analysis,multiple collinearity test and multiple linear regression analysis.The results show that there is a significant negative correlation between corporate governance structure and audit pricing,indicating that under the theory of risk-based audit,the higher the corporate governance structure,the less the risk of misstatement and the lower audit pricing.The relationship between external governance environment and audit pricing shows a significant positive correlation,indicating that the higher level of marketization where the company locates,the stronger demand of enterprises for high-quality audit services and the higher audit pricing.In the further research,this paper finds that external governance environment Improvement will inhibit the negative relationship between corporate governance structure and audit pricing.The research results of the audit pricing not only provide a reference for the accounting firm to set audit pricing standards,but also provide a theoretical basis for the regulatory authorities to audit the regulatory activities,the price department to price and the listed companies to build an effective governance structure.