Research On The Influence Of Related Party Transactions On Audit Fees

In recent years,with the construction and development of "one belt and one road" in China,the frequency of related transactions in the economic market is increasing,and the audit market is also growing.As assurance firm’s auditors to provide professional audit services and ensure that the independent auditing reports issued by the auditees audit charge market economy watches,particularity and related party transactions because its mode of operation for the listed company to strengthen its competitive strength,improve the market value,to achieve specific goal provides efficient channel,the administration has a high degree of motivation to use the operation is simple and difficult to detect fraud activities means of control,which will bring to the beginning of the audit of higher audit risk,in the audit of the need to pay more audit cost,brings to the audit after a greater possibility of litigation.Under the above background,this paper studies the size of related party transactions and whether the size of related party transactions in different property rights will affect audit fees.Will different types of related transactions also affect audit fees? And will the pricing principles adopted by the related parties for the items in the transaction also affect the audit pricing? After considering the desirability of the data,the author selects the total amount of related party transaction assets and the pricing principle adopted by both parties to examine its impact on audit fees.Taking the total amount,types and pricing principles of related party transactions of Shanghai and Shenzhen A-share listed companies from 2015 to2018 as samples,this paper studies the impact of related party transactions on audit fees of firms.The research shows that in listed companies with related party transactions,the larger the scale of related party transactions is,the higher the audit fees are,and there is no significant difference in the fees charged by auditors on the scale of related party transactions for listed companies with different property rights.The positive correlation between the total amount of credit related transactions and audit fees is more significant than that of purchase and sale related transactions.The further analysis from multiple angles shows that the audit fees of listed companies using market-oriented pricing principle are lower than those using agreement pricing principle when conducting related party transactions.Through the empiricalstudy again after the conclusion of this paper is mainly from the related party transactions on the relationship between the audit fee between the constructive countermeasures put forward relevant Suggestions,in hopes to regulate the behavior of related party transactions in China,also for certified public accountants audit charge to provide more reliable basis,improve the quality of auditing services of our country’s audit market.