Abstract
This paper mainly considers key factors in company governance and profit management based on the company scale and finance risk. The empirical analysis indicates that higher company governance level can reduce company agency cost and audit risk, so the audit fee also reduces. It regards the frequent profit and loss as the operable profit of the company, which can measure company profit management level and capability. The empirical analysis indicates that higher company profit management level will increase the uncertain risk, so it will generate higher audit fee. Therefore, it analyzes the company audit fee in two fields and provides reference for preparing the market development strategy.
Highlights
This paper mainly considers relation between company features and audit fee
The company governance and profit management should be considered in research on the audit fee [2]
According to assumptions in this paper, we will establish the following regression model to analyze influences of the company governance variants and profit management variant on the audit fee based on the above analysis
Summary
This paper mainly considers relation between company features and audit fee. Perfection of the company governance can reduce agency cost and audit fee. The audit fee is the reward acquired by the audit office from the enterprises receiving audit service in performance of economy responsibility contract. (2015) Research on Influences of Company Features on Audit Fee. Modern Economy, 6, 626-632. To maximize self interests, the company governance level frequently controls the accounting profits and purchases audit comments from the office, so it erodes audit independence, and increases or reduces audit cost manually. The company governance and profit management should be considered in research on the audit fee [2]. The company governance is the direct factors affecting audit fee and the profit management is the potential factor affecting audit fee
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