Audit Environment Under The Perspective Of Audit Risk Charge Compensation Research

The basic idea of Modern risk-based audit, is to assess the risk as the breakthrough point of the implementation of the audit, and the identification, assessment and response of the audit risk are throughout the all process of audit, and to reduce the audit risk to an acceptable level, to provide reasonable assurance for the financial statements which don’t have material misstatement. The natural existence of the audit risk can produce some audit risk cost. Based on the theory of capital preservation, the transfer of the cost of the audit risk will bring some charge compensation for accounting firms. This paper, has an in-depth research to the risk compensation fees of accounting firms of our country, is based on the actual situation of the audit market of our country, to hope to find whether to pay attention on the audit risk and the degree of attention when the accounting firms are determining the audit charge by the study, and then to reflect the efficiency of the market of our country.This paper has important theoretical and practical value to promote the theory of the audit risk and charge, to regulate the management of the accounting firm’s audit risk and charge, to perfect legal laws and regulations, and to improve the regulation efficiency. This article mainly has researched five aspects in view of the compensation of the audit risk fees. Firstly, had a analysis to the necessity of the research to the problem of the compensation of the audit risk charge, based on the research background and significance. Secondly, had a analysis to the value of the audit, combining with the principal-agent theory, signal indication theory and insurance theory. Then, summed up the audit risk cost need to get compensation from the audit charge, through the analysis of the causes and transfer mechanism of the audit risk cost, in order to realize the capital preservation. Thirdly, had a analysis to the importance of the audit environment to audit, and expounded the classification of the audit risk, based on the macro and micro classification of the audit environment. Fourthly, put forward the theoretical assumptions of the compensation charges of the audit risk from the perspective of audit environment, and set up some corresponding research variables, based on referencing the in classical literature at home and abroad, and grasping the characteristics of the audit market in our country correctly. Fifthly, had an empirical research to the problem of the compensation charges of the audit risk, on the base of the data of2008-2010by collecting from Shenzhen’s and Shanghai’s listed companies.This paper has two innovation points. Firstly, expanded the concept of the audit risk, and attached the audit risk which brought from the micro and macro audit environment to the framework of the risk analysis, based on the audit environment. Charge of auditing risk compensation=f (macro audit environment audit risk, micro audit environment audit risk). Secondly, the audit risk origin audit environment, through the audit environment to look for traces of the audit risk. According to the development of the macro and micro environment audit risk, to design a whole index system to measure the audit risk of the enterprise.The empirical results show that our country public accounting firms didn’t consider the influence of the audit risk fully when to sure audit charge, so we need to perfect it further through the system and the way of supervision.