Research On Audit Fees Of LX Accounting Firm

At present,China’s CPA industry is developing rapidly,the audit market is expanding,and the projects undertaken by accounting firms are increasing year by year.But behind the rapid development,it also brings some hidden dangers and problems.At present,there are more than 7000 accounting firms in China.The firms industry is mixed with each other and the competition is fierce.In the process of development,there are some problems related to audit fees in the audit industry.These problems can not be solved,the audit quality of firms can not be guaranteed,firms may be eliminated in the fierce market,and even the development of the industry will be seriously constrained.LX Accounting Firm is developing rapidly,ranking third in 2016 and 2017 for two consecutive years in the ranking published by CIFIC.It is the strongest accounting firm among domestic firms at present.However,as the "leader" of domestic firms,LX accounting firms still have many problems in audit fees,such as low fees,lack of uniform audit fee standards,and non-standard disclosure of fee information.Therefore,LX accounting firm as the research object,to solve the problem of audit fees,is very representative.This paper is divided into six parts.First part “Introduction”,This part focuses on the research background and significance,research status at home and abroad,research content and methods,innovation.Second part "An Overview of Audit Fees and Its Theoretical Basis".This part mainly introduces the meaning,influencing factors,pricing methods and theoretical basis of audit fees.Third part "Audit Fees of LX Accounting Firms".This part mainly introduces the general situation of LX accounting firm and its current audit fees.The purpose is to show that there is a typical audit fee problem.Forth part "Investigation and Analysis of Audit Fees of LX Accounting Firms".In order to find out the problems of audit fees in LX accounting firm,anonymous questionnaires were sent out to internal employees,and the results were presented and analyzed by chart.Fifth part "LX Accounting Firm Audit Fees and Causes Analysis".In this part,three audit fees are put forward: low fees;lack of uniform audit fee standards;and non-standard disclosure of fee information.Then,the reasons of audit fees are analyzed in detail.The main reasons are lack of core competitiveness,low price competition in the same industry,excessive power of partners in pricing audit fees,and inadequate punishment.Sixth part "Suggestions on Solving the Audit Fee Problem of LX Accounting Firm".This part mainly puts forward corresponding suggestions for the problems found,including enhancing the core competitiveness of LX accounting firms;broadening the scope of business and expanding the customer base;paying attention to the improvement of CPA’s professional ability;setting up the supervision department of audit fees;and strengthening the information disclosure system of audit fees.