Research On The Relationship Of Audit Fee And Earnings Management On The Application Of Fair Value Measurement In Listed Companies

In2006the new accounting standards use quite a lot of fair value measurementattribute in the debt restructuring，non-monetary assets exchange, financial instruments,investment property and other many specific accounting standards. Such a wide rangeof its applications has aroused widespread concern in the theoretical and practicecircles. Could the reintroduced to fair value can achieve its intended purpose,especially how it will affect on the listed company earnings management, whether itwill bring new audit risks and cause the attention of auditors, and whether the auditorshave such concerns will be reflected in its practice of behavior, all of this questionneed to be tested. In-depth study of these problems is not only beneficial to promotethe smooth implementation of new accounting standards and to ensure the quality ofcorporate accounting information; can also facilitate the auditor to improve auditquality, effectively play the role of investor protector, and optimize the allocation ofcapital market resources.Based on the study of scholars and research institutions domestic and overseas, Inthis paper we first use normative research method to analyze the influence of fair valuemeasurement on the earnings management on the angle of financial assets, investmentreal estate, debt restructuring, the exchange of non-monetary assets, loss of assetimpairment in combination with the relevant provisions of specific standards, andfurther analyzed the influence of earnings management on audit fee. Then we collectdata of Chinese listed companies in Shanghai and Shenzhen Stock Exchange in2007-2010and use statistical, correlation analysis and multiple regression analysis andmany other kinds of methods to study the affect of fair value on earnings management,and the influence of earnings management on audit charge. The descriptive statisticsresults show that if the manager of the company has the motivation of earningsmanagement, then use the fair value measurement will obtain very good effect. In themultiple regression analysis, we found that the fair value measurement became ameans of earnings management, the greater the use degree of fair value, the higher thedegree of earnings management, to this phenomenon, the CPA,known as "economicpolice", have shown due care which reflected in the more serious the degree ofearnings management in the company, the more charged for audit fee in the auditpractice. Finally, based on the standard analysis and empirical test results, this paper summarized the research conclusion, and put forward the relevant policies andsuggestions.