A Study Of The Impact Of Audit Risk And Profitability On Audit Expenses Of Listed Companies In China

As an important factor in the audit market,audit fee will not only affect the objectivity and independence of audit,but also affect the quality of audit.It is precisely because audit fees play a huge role in the audit market,audit fees have always been the focus of scholars' research.Audit fee model is constantly updated and changed,and the focus of academic research is also changing.The emergence of risk-oriented audit fee model makes the audit fee model more perfect and accurate,and more and more studies have been made on this aspect.For a listed company,there are many factors affecting audit fees,such as the level of corporate govermance,business complexity,the ability and conduct of managers,and the external regulatory environment.At present,there are many documents to prove the relationship between them.In fact,the profitability of enterprises lias a certain impact on the audit eosts of enterprises.At present,there are few studies on this aspect,so this paper wants to further test.At the same time,many western research conclusions show that audit risk of listed companies has an impact on audit fees.Compared with the early stage of our research,audit risk is rarely considered in the audit process,which leads to unreasonable audit pricing,and thus affects the accuracy of audit results.The main content of this paper is how much audit risk plays an important role in the establishment of audit fee standards and how much the profitability of a listed company affects its audit risk and audit fees.This paper chooses the data of all A-share listed companies in Shanghai and Shenzhen Stock Exchanges from 2012 to 2017 as samples.Firstly,the related concepts and theoretical basis of audit risk,profitability and audit fee are explained and summarized,and the relevant literature at home and abroad is reviewed.Secondly,the relationship between audit risk and audit fees,and the degree of the relationship between them under different profitability conditions are theoretically analyzed and corresponding assumptions are put forward.Thirdly,we use SPSS 18.0 data analysis software to make an empirical analysis of the sorted data samples.Through the empirical test of the relationship between audit risk,profitability and audit cost,we can see that there is a significant positive correlation between audit risk and audit cost indicators of listed companies;there is a significant negative correlation between profitability and audit cost indicators of listed companies;at the same time,under different profitability conditions,the research shows that with the enhancement of profitability,audit risk of listed companies is audited.The impact of billing will gradually diminish.Finally,based on the analysis of empirical research,this paper puts forward relevant suggestions from four aspects:improving the national supervision mechanism,improving the ability of CPAs and professional ethics,improving the corporate governance structure and improving the profitability of enterprises,hoping to provide some reference for relevant academic research and corporate management.