Vol 3, No 1 (2015)

Empirical Research on IPO Audit Fee in China

Na Sun

Abstract

The question of audit fee always is the matter of concern in the audit research area. This article has chosen for the first time a brand-new research area - the audit fee of initial public offerings. We have selected the IPO samples from 1999 to 2006 and examined the determining factors of IPO audit fee through the establishment of IPO audit fee model conforming to the condition of China. The result has further proven the correctness of the traditional audit pricing model. We may see from the return result, IPO audit fee still is influenced by the asset scale of the client, and the scale of auditors. In addition, through analysis of the unique factors of IPO, we can obtain some conclusions different from audit fee of the annual report, the significant purchase, sale, or the replacement of asset in IPO period usually can cause IPO audit fee to increase; in the situation that the auditor simultaneously provides the IPO audit with the verification of the capital, the IPO audit fee is higher.

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Keywords

IPO; Audit Fee; Audit Risk

Publication information

Volume 3, Issue 1
Year of Publication: 2015
ISSN: 1857 - 8721
Publisher: EDNOTERA

How to cite

Sun, N.: Empirical Research on IPO Audit Fee in China. Journal of Applied Economics and Business, Vol 3, No. 1, 39-51. (2015)