The Research Of Auditing Market Concentration On Auditing Fee-experience From China Listed Companies

In recent years, with the development of our country's audit market, the auditing academic research world is paying more attention to audit market .The existing research has focused on audit market supervision , the supply and demand on audit market ,the audit market competition and characteristics, audit market system, and audit quality requirements etc. However, research on the concentration of auditing market in China and the accordingly influence on audit fees is rare. This article aims to study the concentration of audit market in our country with the Harvard's theory of SCP. Based on the Bain's division of industrial monopoly and competition, analyzing the influence of audit market concentration on audit performance, thus to provide reference for our audit supervision departments to determine the future direction of audit market development.By analyzing the 2007-2009 date in SH and SZ audit market, it's found that the concentration of audit market based on customer's assets or customer's volume has greatly increased . According to the industrial division of monopoly and competition raised by Bain , if analyzed through customer's assets, China's audit market is highly concentrated, while if evaluated from customer volume, the audit market is comparatively dispersed. Therefore, it means in large market, the market is concentrated, and in small market, the concentrate of audit market is not so high, as competition in small market is much more fierce. What's more, the market share which the local CPA firm has taken is very small, It's , therefore, urgent and necessary for China to cultivate our own core local firms.The article aims to analyze the influence of audit market concentration over audit fee. By taking the 2009 data in SH and SZ as examples, it indicates that the factors influencing audit fee include market share based on customer numbers , market share based on customer assets and the top ten accounting firms. However, the influence caused by the there factors is not material . Tt means there's no conspicuous effect of level distinction in accounting firms , and the premium of audit fee is not obvious. It tells that the key factors to determine audit fee in our current audit market is customer's assets. The other factors , such as the location and profit status of auditees, and types of audit comment have influence over audit fee as well, but the affect is inconspicuous . The indexes including Customer's business complexity , profitability and operation management have no influence on audit fee.The government supervision departments should properly guide firms to reform and restructure , enhancing the competitiveness of domestic big firms , thus to further optimize audit market structure, cultivate China's core big firms, and according ,to improve the mechanics of audit fee disclosure and supervision.