Relationship between Punishment Degree on Financial Fraud of China's Listed Companies and Audit Risk Pricing:Based on a Study of Administrative Punishment Cases from 2006-2011 by CSRC
Qiwei Chen · Journal of Hangzhou Dianzi University · 2012
The change of the audit fee before and after the accounting and the financial irregularities exposed in the listed companies is one of the important symbols to judge whether the audit pricing is on risk or not.This paper takes the listed companies as examples,which were punished because of their accounting and financial irregularities in a share market from the year of 2006 to 2011,to study the relationship between punishment degree on financial fraud and auditors' risk pricing.And the result shows that the auditors would ask for more audit fees after the listed companies were punished,and the more the companies was punished because of their financial fraud,the higher the audit fee was paid,which shows that the audit fee embodies risk pricing in China.