Product Market Competition?Audit Fees And Audit Opinions

In recent years,with the continuous development of China's market economy and the rise of the securities capital market,the financial fraud and auditing audit failures of listed companies have been exposed,which has affected various stakeholders to make correct financing and investment decisions.The relevant stakeholders of the enterprise will have no trust in the financial statements of the listed companies,which will affect the results of the listed companies' own business activities and related business decisions.The financial information users of listed companies understand the financial status of their operations and management through the financial statements published by listed companies and make the correct decisions they deserve.Therefore,the authenticity,reliability and timeliness of the financial reports disclosed by listed companies are very important.Therefore,stakeholders of listed companies and enterprises hope to improve the quality of financial information disclosure of listed companies through financial verification by independent third parties.As an accounting firm's assessment of the quality of financial information disclosure of listed companies,different types of audit opinions reflect the level of financial information disclosure of listed companies.The financial information users of listed enterprises can make corresponding correct management decisions according to the type of audit opinions issued by the accounting firm,and the listed enterprises can achieve their business objectives.Higher quality audit opinions can improve the quality of listed companies' financial accounting information,ease the incomplete information of listed financial information users,reduce the operating costs of listed companies,and improve their business performance and value.Generally speaking,the auditing unit conducts auditing of the financial statements of the audited entity and collects fair and reasonable audit fees.However,in the current audit market in China,when the accounting firm conducts auditing business,the level of auditing service fees collected deviates from the law of perfect competition in the basic market,resulting in the occurrence of bad audit fees,indicating abnormal audit fees.The situation is there.China's Securities Regulatory Commission stipulates that listed companies must disclose the amount of audit fees charged by accounting firms in their annual financial statements.Whether the audit fees collected by accounting firms on listed companies reflect the level of audit opinion they deserve is closely followed by domestic research scholars.Therefore,research on the relationship between audit fees and audit opinions is of great significance.As for the product market competition as an influencing factor of the external governance mechanism of the enterprise,it can improve the operation of the enterprise.However,there are few studies on the competition and audit of the product market,and whether the competition of the product market has an impact on the research of the audit fee and What is the path of influence has not caused widespread concern among researchers.At present,although domestic and foreign scholars have achieved certain research results on product market competition and audit related issues,there is still a lack of research on the relationship between product market competition and audit fees and audit opinions.In order to explore the correlation between the audit fees charged by the accounting firms for listed companies and the audit opinions,the impact of product market competition on the relationship between the two is analyzed.First of all,this paper expounds the background and significance of product market competition,audit fees and audit opinions,and summarizes the existing research literature.Secondly,according to the relevant theoretical basis,this paper constructs the research object model,conducts logit regression analysis and tests,and obtains the research results.Finally,based on the theoretical basis and the analysis results obtained through empirical evidence,this paper gives reasonable and effective suggestions for future research in related fields.This paper selects the A-share listed companies in Shanghai and Shenzhen from 2007 to 2017 as a sample,first analyzes the impact of audit fees on audit opinions,and further analyzes the logit regression analysis of the audit fees subdivided normal audit fees and abnormal audit fees.At the same time,join the product market competition variables and conduct further analysis.The empirical results show that the audit fees and the standard audit opinions are significantly negatively correlated;similarly,the abnormal audit fees charged by the firm and the standard unqualified audit opinions are also negatively related.At the same time,the path research shows that in addition to considering the normal auditing costs,accounting firms will charge audit fees according to the company's earnings management level,affecting the types of audit opinions issued,and according to the theory of principal-agent theory,product market competition reduces corporate earnings management.The level,which reduces the audit risk of the accounting firm,and then has a regulatory negative correlation between the audit fee and the audit opinion.