Research On The Impact Of Strategic Differences On Audit Fees

As early as the 1980s,Simunic began empirical research on audit fees in the US capital market.Since then,many scholars have explored the influencing factors of audit fees from different angles,and a large number of research results have emerged.Today,audit fees has become a relatively mature research field,but as the economic environment continues to change,more new factors affecting audit fees continue to emerge.In recent years,due to the development of information technology,the process of economic globalization has accelerated and business competition has intensified.Enterprises follow the conventional development strategy of the mainstream of their industry.Although they are beneficial to ensure the legal compliance of operations,they can only obtain modest business performance Therefore,more and more companies begin to seek strategic differences in order to gain advantages in fierce competition.Position and improve operational performance.Research on the economic consequences of strategic differences has gradually become one of the focuses of academia.After combing the existing literature at home and abroad,this article finds that scholars' research on strategic differences mainly focuses on their business activities or financing activities.As a result,few scholars have extended the study of the economic consequences of strategic differences to the field of auditing.In 2010,the Ministry of Finance revised the "Accounting Standards for Chinese Certified Public Accountants No.1211—Understanding the audited unit and its environment and assessing the risk of major misstatement",which clearly requires certified public accountants to understand the audited unit's goals,strategies,and possible major Misreported risk-related business risks,and existing studies have shown that deviations from the industry ' s conventional strategic model will increase the company's business risk and lead to an increase in the likelihood of obtaining extreme performance,so whether these effects of strategic differences will penetrate audit fees Among them?This article attempts to explore the relationship between strategic differences and audit feesThis article is based on the support of strategic management theory,principal-agent theory and risk-oriented auditing theory,with reasonable reference to existing research results,taking the empirical data of A-share listed companies in Shanghai and Shenzhen in 2010-2018 as samples,using norms and empirical in a combined manner,the effect of strategic differences on audit fees is studied.The results show that the greater the strategic difference between enterprises,the higher the audit fees;at the same time,the nature of state-owned property rights weakens the relationship between the two;further,the overall sample is grouped according to the quality of internal control and analyst attention,and the strategic differences and audits are also found.The correlation between charges is more significant under the conditions of low-quality internal control environment and analysts' low attention,otherwise the significance is weaker.The main contributions of this paper may include:(1)From the perspective of corporate risk,the impact of strategy is extended to the field of audit,which enriches the research on the economic consequences of corporate strategic deviations and expands the research on the influencing factors of audit fees.(2)This article further examines the impact of different property rights,internal control quality,and analyst attention on the relationship between strategic differences and audit fees,and enriches the scope of existing literature.