Research On The Relationship Between R&D Investment And Audit Pricing Under The Innovation-Driven Strategy

Nowadays the world is facing many changes.As for the development of China in the future,there are both opportunities and challenges.Scientific and technological innovation plays a pivotal role in keeping the national economy growing.Chinese enterprises need to improve competitiveness through continuous innovation and R&D activities,in order to gain an competitive position in international trade.Over the years since the implementation of the innovation strategy,China’s overall innovation capacity has been continuously enhanced,corporate innovation awareness has significantly improved.Enterprise innovation has become more and more prominent.According to Modern Risk-Based Audit,the Certified Public Accountants will pay higher attention to enterprise’ R&D activities.According to Simunic audit pricing model,the price level of audit services reflects the costs of the audit process and the risk premium in audit fee audit risk premium they bear.This paper studies on the relationship between R&D investment and audit pricing issue of Chinese enterprises,hypothesizes based on the study of relevant literature and theories,and confirms the hypotheses through empirical testing.The paper takes China’s A-share listed companies from 2012 to 2021 as research samples,while controlling relevant variables.Finally found that there is a significant positive correlation between R&D investment level and audit pricing level in Chinese enterprises.The greater the R&D investment,the higher the audit price as well.The study also found that innovation environmental factors play a regulatory role between R&D investment and audit pricing level.At the end of this paper,the article makes some constructive recommendations.