Research On The Influencing Factors Of Audit Fees In IPO

With the development of capital market,there are many problems to be solved,such as the randomness of IPO audit fees,the low price and the insufficiency of information disclosure.Accounting firms play an indispensable role in the initial public offering(IPO).Many factors affect IPO,including profitability,revenue,cost,tax,cash flow,significant financial risk,basic accounting work,independence and related transactions,the performance of the continuous calculation and so on,and all of these factors are evaluated and reflected by the IPO audit,therefore,from a certain meaning,results of IPO audit are directly related to the success of enterprise's financing from IPO.The accounting firms as intermediary service institutions undertake the CPA business,engaged in auditing and in providing audit services,and then charge a fee to compensate for audit work,is a normal market economic behavior,is also the premise to the normal operation.What are the reasonable criteria for the audit fees?What are the factors that affect audit fees?These problems are obviously worthy of study and should be studied.As early as the beginning of 1980s,foreign countries began to study the factors that affect audit fees.Simunic's " The pricing of audit services:theory and evidence " in the United States in 1980 is the earliest and most classic.In China,until the 2001,annual report of listed companies began to disclose audit fees,audit fees have made great progress.In recent years,as a new and important field of the research on the audit fees,IPO audit fees have been paid more and more attention.With the increasingly fierce competition in the audit market,it is found that too low or too high audit fees may affect the quality of IPO audit.On the whole,at present,scholars in China have made some achievements in the research on the factors of IPO audit fees.The fly in the ointment is that these studies are mainly theoretical research,lack of empirical research.On the basis of domestic and foreign scholars on the theory of audit fees,according to the Simunic's model,we collected 83 samples of China in year 2014 and year 2015 from Shanghai and Shenzhen Stock Exchange,establish a regression model of factors influencing China's IPO audit fee and carry out empirical research.The results show that the IPO audit fees of A share market in China are significantly related to the total assets of the client,IPO exchange and the amount of shares issued.Finally,according to the results of empirical analysis,this paper puts forward some suggestions for the construction of China's audit market.