A Study on Audit Fees Decision Making: Evidence from China Stock Market

摘要

This paper examines the correlating factors of the audit fees in China. By analyzing the data concerning a number of variables representing client size, auditing risks, auditor change and the prestige of auditing firm, a model is developed of the determinants of audit fees. The study confirms that most of the previous research findings are also applicable to the Chinese market, and that audit fees are significantly associated with the complexity of audited firm, the prestige of auditing firm, the board independence, the frequency of board meeting, and auditor change.