The Industry Characteristics Of Listed Companies And Audit Costs Related To Research

The audit fee formation was impact by many internal and external factors in audit services market, which industrial characteristic as the new component of corporate governance mechanisms, it has an important influence the operation of the company. In this article, we define the characteristics of listed companies in the industry in which the industry and the characteristics of the industries in which (industry competition, product market in which industry, trade the asset structure, the industry is controlled). As China, A-share Public companies as an example, this paper attempts to make a positive research analysis of the relationship between industry characteristics and audit fees. It will provide some reference for improving audit theory of listed company and enhancing the risk awareness of accounting firms.In this paper, we will carry out the relationship in terms of empirical studies of the industrial characteristic and auditing fees, to provide a reference with a view to the formulation of government policy, as well as the improvement of auditing. This paper has the theoretical research between the industrial characteristic and the auditing fees at the basis of draw research results which have been achieved by the domestic and abroad's scholar through the method of combining standardized research and empirical research. Then I choose some financial data of Chinese listed companies from 2006 to 2008 year, and have some statistical description and comparative between the industrial characteristic and auditing fees. After this, I use the method of empirical research to analysis the impact of the industrial characteristic on the auditing fees of Chinese listed companies. The result of empirical research is the same as theoretical analysis and statistical description. We can drive the following conclusions:(1) There are significant differences of the auditing fees in different industry. This differences are prevailing between industries; The auditing fees has a high degree of stability in the same industry. (2) There are notable impact for industrial characteristic against auditing fees. There is a negative positive linear correlation between the company amount and the auditing fees. There is a significant positive linear correlation between the Herfindahl-Hirschman Index and the auditing fees. There is a significant positive linear correlation between the concentration of befor the four largest company in induastry and the auditing fees. There is a significan positive linear correlation between the proportion of fixed assets and the auditing fees. There is a significant positive linear correlation between the industry control and the auditing fees. And the differences between industries also have stability. According to the conclusions, we can improve our understanding of the audit pricing model, so as to strengthen the supervison of audit fees.