Supply Chain Finance And Audit Fees

Since the 21st century,the competition in the audit industry has become more obvious.Simuic has developed a classic model of audit fees.With the development of the audit industry,the classic model can no longer meet the market demand,so many people have begun to improve the classic model,and our audit fees are becoming more and more transparent,which has laid a good data foundation for the industry to carry out empirical analysis and support.Development of follow-up research work.In 2006,Shenzhen Development Bank first proposed the new financing model of supply chain finance business.Subsequently,supply chain finance as a new financing channel developed rapidly in China.Supply chain finance from the industrial supply chain perspective on a series of upstream and downstream The credit risk of small and medium-sized enterprises is evaluated,and the credit of core supply chain enterprises is used for bank credit.The development of this kind of business will lead to the credit risk of enterprises that carry out supply chain financial business higher than traditional finance.Therefore,the enterprise's supply chain financial business is likely to cause an increase in audit fees.The previous research on supply chain finance mainly focused on alleviating financing constraints,and the study of its impact on audit fees is mostly qualitative research.This article breaks the limitations of previous research and selects China's 2014-2017 listing formula to develop supply chain finance business.Data,study its increase in audit costs and conduct hypothetical reasoning and empirical research to test whether the company's supply chain financial business will affect audit fees,and whether the firm's reputation and company size will carry out supply chain financial business and audit on the company The relationship between costs has an impact.Through theoretical analysis and empirical testing,this paper draws the following conclusions:First,the company's supply chain financial business will increase audit costs.The company's supply chain financial business increases the company's credit risk and also increases the audit risk of the auditor's audit work.This additional financial business will increase the company's business complexity.The auditor in order to ensure the smooth progress of the audit work and affairs The reputation of the Institute will increase audit investment and audit procedures,which will result in an increase in audit costs.Second,the selection of firms will have a positive adjustment effect on the relationship between supply chain financial business and audit fees.The Big Four accounting firms have certain industry expertise and have more understanding of the audit risks and audit investment brought about by the supply chain financial business,and the more resources they invest in the audit business.Third,the size of the client will positively regulate the relationship between the supply chain financial business and audit fees.The larger the client scale and the higher the complexity of the business,the more audit evidence and audit procedures the auditor needs and the corresponding increase in audit costs.At present,in the analysis process of the supply chain finance field and the audit fee relationship,there is still no relatively mature theory.This article expands the relationship between the supply chain financial audit to a certain extent,enriches the existing theoretical results,and provides the supply chain financial audit Provides an important basis.