The Research Of Accounting Firm Scale,Audit Fees And Audit Quality

In this century,a series of large financial frauds of listed companies in China and abroad make the public to doubt the quality of audit report which provided by the audit industry.And the reputation of it has been hit at the same time.Thus improving the quality of audit is still an urgent task in our country.This thesis is aim at researching two things.One is the effect of the film scale after the merger of accounting firms.The other is whether the audit quality can be improved with the increasing audit fee.It will provide policy references about policy-driven accounting firm scale and reasonable audit fee.The thesis researches the relation among listed companies accounting firm scale and audit fee and the audit quality of Shanghai and Shenzhen A-share after these large merger trend.And it tries to verify whether audit quality can be truly improved by bigger scale and higher fee of accounting firms.Firstly the thesis introduces the background and the significance of this research,and points out the necessity of enlarging the scale of the firm and raising the audit fee.Then,related literatures of the firm scale,audit fee and audit quality are reviewed.What's more,the thesis states the theoretical basis of the firm scale,audit fee,and audit quality.And quotes economy of scale theory,reputation theory,"deep pocket" theory,principal-agent theory,public goods theory and asymmetric information theory to analyze the relation among the firm scale,audit fee and audit quality.Finally,the thesis proves the relation among the firm scale,audit fee and audit quality by using empirical analysis and puts forward the corresponding policy suggestions.The thesis select two cities based Shanghai and Shenzhen A-share main board listed companies on the 2013-2015 as the research object.And verify the relevant assumptions by descriptive analysis,correlation analysis and regression analysis.We found that there is a significant correlation of accounting firm scale,audit fee and audit quality.According to the results of the study in this paper,accounting firm puts forward to the corresponding countermeasure and suggestions.And economic added value strengthens the correlation between audit fee and audit quality.The thesis improves the audit quality by providing beneficial reference to promote the development of market.