Research On The Influence Of Management-profit Forecast Quality On Audit Cost

In recent years,with the continuous expansion of the scale of capital market operations,market participants have a purpose and motivation to pursue higher-quality financial information.The financial information disclosure system with historical information as the main body is increasingly difficult to satisfy analysts for early warning.Judgment needs.Compared with historical information,the continuous development and improvement of the performance forecast system has made up for the lag of information disclosure to a certain extent,which can effectively alleviate the information asymmetry between market participants and stakeholders.Existing research shows that the information content disclosed by the quality of management 's profit forecast can be timely feedback in the circulation market.The reputation and accounting integrity level reflected by the external market as the carrier of the company provide relevant information for the accounting firm to carry out audit services.The evaluation basis and basis of this risk assessment result can affect the implementation of audit assessment and bargaining to a certain extent.At present,China's auditing standards require auditors to pay attention to key performance indicators,forecast quality and other information of the industry in which the enterprise is located,in order to identify and evaluate the possibility of major misreporting risk of the enterprise.Under the guidance of the risk-oriented audit concept,the audit risk assessment activities carried out by the auditor will run through the entire audit design and implementation.To this end,the auditor assesses the size of the enterprise's audit risk during preliminary business activities and will determine how many audit procedures need to be implemented.At the same time,the quality of profit forecast as an important basis for risk assessment can have a certain degree of impact on the auditor's risk assessment of major misstatement.Existing research on the quality and economic consequences of management's profit forecast mainly focuses on the impact on investors' investment decisions.Few scholars have extended the impact of profit forecast to audit.This article explores the relationship between management profit forecast information quality and auditor risk assessment basis,and then uses multiple perspectives of profit forecast quality as anentry point to determine the factors that affect audit costs in more detail,providing enterprises and firms with more Empirical evidence of practical significance.Based on this,this article explores the relationship between the quality of the previous management 's profit forecast and the current audit cost from the perspective of the impact on the auditor according to China 's profit forecast disclosure system,combined with theoretical and empirical research.Selecting the 2014-2017 data of A-share listed companies for empirical testing,the study found that:(1)The quality of the earnings forecast issued by the management in the previous period is significantly negatively related to the current audit costs,specifically: The less,the higher the profit forecast quality,the lower the audit cost.(2)Efficient internal control can alleviate the information gap between auditors and enterprises,and weaken the negative correlation between management's profit forecast quality and audit costs.(3)In the further study,different profit forecast disclosure methods were divided into voluntary disclosure and mandatory disclosure,which further verified the relationship between the above management profit forecast quality and audit fees.Finally,based on the conclusions of the above research,the company and the regulatory agencies are put forward relevant suggestions from the perspective of the management profit forecast disclosure system and the status of audit pricing.