Research On The Relationship Between Listed Companies’ Irregularities And Audit Fees

With the gradual entry of my country’s economy into a new normal period,the competition in the capital market has become more and more fierce,and the operation and development of micro-enterprises has also encountered many risks and difficulties.In order to maximize profits,many companies take risks at the expense of employees,the government and related parties.In recent years,there have even been some serious corporate violations.In this context,the intensity of law enforcement supervision in my country has also gradually increased,and incidents of corporate violation announcements have also increased,involving various violations.Not only the practical community pays special attention to this issue,but the theoretical community also pays more and more attention to the frequent corporate violations.However,although a lot of researches on corporate violations have been conducted in academic circles,they mostly focus on the causes and influencing factors,and pay less attention to the economic consequences of corporate violations.Based on a third-party perspective,this paper mainly studies the impact of corporate irregularities on audit fees,providing supplementary empirical evidence for research in related fields.This paper takes my country’s A-share non-financial listed companies as the research object,selects the financial data from 2007 to 2020,and empirically tests the empirical relationship between corporate irregularities and auditors’ decision-making.The results show that compared with the sample companies with violations,companies with violations will face higher audit fees and longer audit times.And the relationship between the two will be affected by internal control and audit institutions.Specifically,corporate violations will increase audit fees and increase audit time.Only when the internal control of the company is effective and the audit institution is a non-international big four.Significantly.Further,according to the types of corporate violations(false records,illegal transactions,major omissions and inaccurate disclosures)and announcement institutions(Shanghai Stock Exchange,Shenzhen Stock Exchange,China Securities Regulatory Commission and listed companies),the total sample is classified.By regression,it is found that regardless of the type of violation and the issuing agency,there is an empirical relationship between corporate violations and auditors’ decision-making.This paper also conducts robustness test and endogeneity test to further verify the scientific rationality of the conclusion.Based on the basic conclusions of this paper,this paper puts forward some suggestions on the listed companies themselves,accounting firms,and government supervision departments,in order to provide some useful evidence for regulating the development of enterprises.This paper enriches the literature research on corporate non-compliance by studying the audit effect brought about by corporate non-compliance time.The research in this paper is not only helpful for a comprehensive and rational understanding of the economic consequences of listed companies’ violations,but also for scientific understanding of the necessity and effectiveness of strengthening capital market supervision,and promoting the healthy development of the economic market.From the perspective of auditing,this paper conducts some research on the restraint mechanism of corporate irregularities,which provides a certain degree of reference for the decision-making of regulators and relevant investors.