Screen Of Earnings Management,Audit Risk And Audit Fees

There are different degrees of earnings management in listed companies generally.Earnings management is the reflection of management opportunism motivation,and it shows management bias,and with external regulation environment getting more and more perfect,enterprises are more inclined to operate real earnings management,which increases the difficulty of CPA's audit.What's more,with the introduction of risk-oriented audit model,relevant standards require CPA pays more attention to the influence of risk factors on the audit procedures.Will CPA improve the level of risk assessment that caused by earnings management? Will CPA increases audit fees to cope with different ways of earnings management in the financial statements audit? Will CPA consider the signal of the internal control design and operating effectiveness which released by earnings management in financial reporting internal control audit?To explore the problems,we use literature analysis method,normative analysis method and empirical analysis method by reviewing and summarizing the related literature and the research results,and we selected Shanghai and Shenzhen A-share listed companies from 2011 to 2015 as the research object in order to investigate CPA's perception of different ways of earnings management.First of all,on the basis of collecting and reading relevant literature,and combing the correlation among earnings management,audit risk and audit fees by review related literature.Second,it's mainly talking about reviewing the relevant basic theory and system background and explaining the meaning of key terms.Third,there is a specific analysis of the mechanism between earnings management and audit risk,what's more,the inner logic of different ways of earnings management affect audit fees in the financial statements audit and financial reporting internal control audit,on the basis of it,we put forward three research hypotheses.Fourth,there are correlation analysis,regression analysis and robustness testing to verify the accuracy of the hypothesis through selecting variables and constructing the regression model,Finally,we get the research conclusions,there are three countermeasures from the aspects of the audit fees standards,CPA's supervision and enterprise respectively and on account of the conclusion.In order to work on the theory and practice,it also gives a prospect to the future.The study found that earnings management increased audit risk,and further studies show that earnings management were significantly affected CPA's audit charge decision both in the financial statements audit and internal control audit.The results show that CPAhas the ability to identify the earnings management,and they give full attention to the signal which released by earnings management,and CPA increased the level of risk assessment and it was considered in the audit pricing.This paper not only studies the different ways of earnings management on the influence of the financial statements audit fees,but also analysis the mechanism and the way of earnings management influence the financial reporting internal control audit fees.It provides direct evidence to CPA for understanding different ways of earnings management and opening a new view for researching the influence factors of financial reporting internal control auditing,as well as providing reference to verify CPA's role in maintaining market order.