Study On The Audit Fee's Determinants On The China A Stock Market

Audit service provides reasonable assurance for the relativity and reliability of financial information ,which plays a crucial rule in reducing the information asymmetry between investors and management on securities market.As the price of audit service audit fees is determinate by not only demand and supply but also institutions of securities market. Base on it , this dissertation analyzes the mutual reaction between demand and supply of independent audit and its' price :audit fee .In China ,the imperfect corporate governance leads to inadequate voluntary demands for independent audit, and according results in the lack of CPA's economic motives to pay for reasonable audit fee. At the same time ,audit firm must earn money from their audit service to live on. On the other hand, the present institutions fail to induce the listed companies have a voluntary demands for CPA's service. Finally, according to the research ,the author makes some suggestion to improve audit fee of listed companies in our country.