Factors Influencing Audit Pricing

Audit pricing of public companies focuses conflicts and contradictions between the interest of the public and itself industry, and shows all the difficulties and dilemmas during the operation of the independent audit. Audit pricing plays an important part in audit mechanism of CPA, closely links with accounting firm's market-competitive conduct and audit practice behavior. Researching audit pricing, industry characteristics of independent audit and the audit market performance can be seen. The pricing of audit independence also plays an important role in auditor independence and audit quality audit. By studying the audit pricing, we can understand the factors that affect audit pricing and audit market competition condition, whether the existence of monopolistic market structures lead to excessive economic rent? In a competitive market, whether the low balling or audit discount exists? And harm to the independence of auditors and audit quality. Therefore, the research of audit pricing not only helps us understand the audit market and enhance the audit services awareness of the main stock market participation, but also helps regulators better understand the characteristics of the audit market, insight into the strategic behavior of the audit market players, so as to formulate regulatory measures for a scientific theoretical basis. Therefore, the audit pricing is an important aspect of the study of academic and practice.Compared with Western countries, China's securities market is not mature, adding to the low industry concentration, price competition, insufficient demand for high audit quality. And in the public companies there are still more state-owned properties, higher ownership concentration, corporate governance structure not perfect and so, all of which will impact the audit pricing? The article comprehensive uses the accounting and auditing theory, and combines specification and empirical research, uses the data of from 2005 to 2009, studies those factors how.to affect audit pricing. Study found that Scale, complexity, quick ratio, non-audit services, the nature of the actual controller, separation of two rights, Auditor type, the audit report type, and auditor changes have significant impact on audit pricing. But some factors about corporate governance have less affect on audit pricing. Finally, some polices are proposed about problems in the China Stock Market.This paper mainly includes five parts:the first part mainly describes the background and motivation of the article, and summary of the domestic and foreign study on this topic, also includes research design, and methods. The theoretical analysis and research design section based on the theoretical analysis, the article puts forward hypotheses, sets the variable, establishes the model and selects samples and so on. In the Empirical analysis part, the article first analysises the sample, tests the empirical, and then draws conclusions of the study and give this conclusion a reasonable explanation. Policy and recommendations section summarizes the existing of our inadequacies in securities market, to these problems, propose some recommendations in securities market. Finally, summary conclusions, empirical research exists inadequacies, innovations and prospects for future research.