| As an independent economic supervision activity,audit has always undertaken dual responsibilities.On the one hand,we should safeguard the public interest,reduce the agency cost of enterprises and promote the rational allocation of resources;On the other hand,we should maintain the development and progress of the industry.What forms the economic connection between the firm and the audited enterprise and affects the exertion of the audit function is the audit fee.Therefore,the audit cost has been attached importance to research experts.Since the opening of China’s audit industry to the market,the low-cost competition of audit fees has become increasingly fierce among accounting firms,this allows the normal function of the audit not to play normally,and the case failed to occur frequently.Research on the audit of low-cost charging competition is very important and how to improve it for restoring the audit function and ensuring the operation efficiency of the capital market.Based on the relevant theories of audit low-cost charge competition,and based on the average audit charge of Shanghai and Shenzhen A-share listed companies and the audit charge data of new customers of Lixin from 2014 to 2020.The results show that Lixin has been in a competitive state of low audit fees from 2014 to 2020;Lixin’s audit fees for Baoqianli are also lower than the reasonable price level.Further analysis of the relevant factors behind the audit low-cost fee competition shows that:(1)The core competitiveness of Lixin certified public accountants is not qualified,so it cannot guarantee the audit quality of the low-cost competition strategy when reducing the audit cost.Auditors cannot fulfill their responsibilities,which eventually leads to audit failure.(2)Imperfect internal control system and malicious financial fraud are directly related to Baoqianli’s choice to lower audit fees.(3)The lack of audit supervision provides an external environment for the competition of low-cost audit fees.This paper makes the following suggestions:firms,we should enhance the core competitiveness and improve the professional quality of auditors,strictly improve and implement standard audit procedures,and set up supervision departments for internal real-time supervision if capable;In terms of listed companies should optimize the corporate governance structure and strengthen the understanding of the importance of audit;For the country,we should increase the punishment and supervision intensity,establish a relatively unified audit fee standard,and strengthen the disclosure of audit information. |
