The Impact Of Tax Collection And Management On Audit Fees

Audit fee has always been an important research topic in the field of audit theory and practice,and its research results also have practical guiding significance for audit work.At present,the research on audit fees mostly focuses on the company characteristics and the level of audit firms.Some scholars also pay attention to the impact of external environment such as changes in economic policies and audit standards on audit fees,but there are few studies on the impact of tax collection and management on audit fees.Under the background of China’s unique political system,the tax collection and management system is beneficial to protect the national tax base and promote the modernization of national governance.At the same time,its effect can spill over to the market economy and affect the market subjects,including enterprises and accounting firms.Although China’s Golden Tax phase IV era is coming,it is also very important to study the previous Golden Tax Project,which can not only summarize the policy effect of Golden Tax phase III project,but also provide reference for the development and improvement of Golden Tax phase IV.Based on the above contents,with the help of the quasi natural experiment of the Golden Tax phase III project,taking the A-share listed companies from 2008 to 2020 as the sample,this paper uses the double difference method and other econometric analysis methods to study the impact of tax collection and management on the audit fees of listed companies.Through literature research and theoretical analysis,it is found that the mechanism of the impact of tax collection and management on audit fees is that the enhancement of tax collection and management may improve the quality and operation level of financial reports of enterprises by reducing enterprise tax expenditure,curbing enterprise tax evasion motivation and financial manipulation,and alleviating internal agency conflict,so as to reduce their operation risk and agency risk,and the audit fees will be reduced accordingly.From the econometric analysis results,it can be seen that the empirical research results are consistent with our theoretical prediction,that is,tax collection and management reduce the audit fees of listed companies.After the mechanism test of the two intermediary variables of business risk and agency risk,it is found that after the launch of Golden Tax phase III,tax collection and management has no significant impact on business risk,and tax collection and management mainly affects audit fees by reducing agency risk.In addition,the impact of tax collection and management on audit fees shows a more significant effect in non-state-owned enterprises,enterprises audited by non-Four accounting firms and listed companies with low degree of internal control.The research conclusion of this paper helps auditors optimize audit procedures and improve work efficiency,and the effect research of Golden Tax phase III also provides a reference basis for policy makers.At the academic level,it enriches the theory of tax collection and management affecting the micro subject of enterprises and the research on the influencing factors of audit fees charged by firms.