Cost Stickiness,audit Fees And Audit Delays

Risk-oriented auditing is the main auditing model adopted in modern auditing.Based on the risk-oriented audit,the auditor needs to pay more attention to the risks facing the enterprise,including internal and external risks,which will affect the audit decision of the auditor,including audit costs,audit resource input,and audit opinions issued.The cost stickiness phenomenon,as one of the common phenomenon of Chinese listed companies,is a comprehensive indicator that can reflect the internal and external risks of enterprises to a certain extent.So,in the audit process under the risk-oriented audit model,does the cost stickiness of the enterprise affect the audit decision of the auditor? Worthy of attention.Based on the foregoing background,this article explores the correlation between cost stickiness and audit fees,cost stickiness,and audit delays that reflect audit investment.This paper conducts research based on sample data of Shanghai and Shenzhen A-share listed companies from 2007 to 2018.The results show that:(1)the greater the cost stickiness,the greater the audit expense;(2)but the cost stickiness does not significantly affect the audit delay that can reflect the auditor's investment.Further analysis and research found that the greater the cost stickiness,the greater the possibility that the company will suffer losses in the future,and the greater the motivation of the company's earnings management;The above research conclusions show that the cost stickiness of enterprises increases the risks faced by auditors to a certain extent,and auditors are more inclined to respond by collecting audit premiums when faced with the risks brought by cost stickiness of enterprises.Rather than increasing audit investment,maybe companies with cost stickiness are more likely to make major accounting error corrections later.This research conclusion is helpful for enriching the relevant literature on the impact of cost stickiness on the auditing field,and it can also provide reference for auditors to make audit decisions when dealing with similar risks.