The Research About The Influence Of The Transformation Of Accounting Firms On Audit Fees

In China, the relevant system of accounting firms has been through many changes. In order to promote the development of accounting firms, the Chinese Ministry of Finance issued a regulation in 2010 that requires large accounting firms should be changed to a special general partnership structure and encourages middle accounting firms change to a special general partnership structure. The transformation of the firms has led to a large increase in the legal responsibility of the auditor and the corresponding legal risk increases either, and whether the auditor will increase the audit fees according to the principle of the risk premium? At present, there are few researches in our country, so I choose the transformation event to do the empirical research, In order to enrich the research achievements of this field.This paper reviews the history of the relevant system changes of Chinese accounting firms, and then selects the data of 2009-2014 years for empirical research. According to the "deep pocket" theory, the risk premium theory and the classic audit pricing model, the empirical analysis is carried out, combined with the Z test to research the difference between two regression coefficients. The results show that: the transformation of the firm will lead to the rise of the audit fees of the local accounting firms in China; And the audit fees of small size customer increased significantly; The big four international firms are also affected by the transformation and the audit fees have risen, but not as obvious as the local firms do. This paper can help policymakers know the effect of system transformation and help CPAs understand transformed system for their own influence, so as to avoid unnecessary legal risks. At the same time it helps audit unit choose the reasonable accounting firms. In this paper, the sample time span is greatly increased, which can better study the actual effect of the transformation after the transition period. And based on the research above, the paper puts forward the corresponding policy recommendations and makes a prospect for future research.