StudentShare solutions
Triangle menu

Empirical analysis of determinants of audit fees in China - Essay Example

Nobody downloaded yet

Extract of sample
Empirical analysis of determinants of audit fees in China

However, financial information about some of the listed companies was missing for which the Chinese database RESSET was used as the supplementary source. Apart from this, annual report of some of the companies was also checked. The data that are considered for the study are of 2011. For the analysis of the collected data SPSS, statistical software has been used. The first section is based on the analysis of the whole data set that comprises of data of the listed companies of both Shenzhen and Shanghai. The second section analyses the data of the two cities separately. 4.2 Descriptive Statistics of whole sample The Table 1 given below shows the statistics for the audit fees with respect to the other variables. As the table shows that the minimum audit fees is ?1.00 million, whereas the maximum is ?3.51 million. This reveals that there is a huge difference between the audit fees of the two cities. However, the average audit fees in these two cities are ?3.51 million. This huge difference can be due to the factors like characteristics of the area and financial position of the company, which are located at the various places of the two cities. ...
The minimum inventory ratio is 0 while the maximum is .94. The average inventory ratio is 0.18. The inventory ratio depicts a huge difference between the maximum and minimum levels. Some of the organizations are seen to have no inventories at all while some other companies are having a high level of inventory with them. This ratio helps in determining the fact whether the organization is making optimum utilization of resources. Therefore, a high inventory ratio is not good for the organization (Barthwal, 2007; Anupindi et al., 2008). Accounts receivables is the claim that is paid in cash and in exchange for the product and services that are provided by the company. The position of accounts receivable in comparison to the total assets of the firm is shown by the accounts receivable ratio. It signifies the complexity of the organization (Jiambalvo, 2009; 2007; Weil, 2012). The table 1 shows that the accounts receivable ratio ranges between the minimum value of 00 and the maximum value of 0.60. The average account receivable ratio is 0.93. The intangibles ratio of the firm is another factor, which is considered to affect the auditor’s fees. When the intangible assets are compared to the total asset, it is seen that the ratio is at a minimum level of 00 and the maximum level of 0.67. The average intangible ratio is 0.05. This reveals that some of the companies do not have any type of intangible assets while some others have. The current ratio is another factor that may affect the audit fees. The current ratio is calculated by dividing the current assets by the current liabilities (Lasher, 2013; Pratt, 2010; Gibson, 2012). The minimum current ratio is 0.11 and the maximum is 204.74. This signifies that there exists a huge ...Show more


Empirical Analysis of Determinants of Audit Fees in China Table of Contents 4. Analysis 3 4.1 Introduction 3 4.2 Descriptive Statistics of whole sample 3 4.3 Descriptive Statistics of sub-sample 5 4.4 Correlation Analysis of whole sample 8 4.5 Correlation Analysis of sub-sample 9 4.6 Regression Analysis of the whole sample 13 4.6 Regression Analysis of the Sub Sample 14 4.7 Interpretation 16 Reference List 18 4…
Author : rhiannon77
Empirical analysis of determinants of audit fees in China essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Empirical analysis of determinants of audit fees in China"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

The Level of Audit fees - current issue in Auditing with special emphasis to FTSE 100 Companies in UK
This research essay will study the how the auditor’s independence is impacted especially with the level of audit fees with particular emphasis to the FTSE 100 companies in UK. Many empirical studies have found that there is a close nexus between the high audit fees and auditor’s connivance with corporate to window dress their accounts.
13 pages (3250 words) Essay
Market analysis/ Audit
In this study advertising plan was presented. Its main aim is to expose the product to the customer. Since the company is new, shedding the lights on the superb technology that is utilized in these products is highly critical. Penetrating the channels of advertising through e-commerce along with “brick and mortar” stores can be highly beneficial.
11 pages (2750 words) Essay
The analysis of EC Proposals and the Statutory Audit
The housing boom led to the creation of various derivatives such as credit default swaps (CDS) which attempted to spread the risks of sub-prime lending. The financial crisis crippled the international financial system leading to a major recession which still threatens to be a double dip.
16 pages (4000 words) Essay
Analysis of China Airlines
This section describes the macro-level dynamics of this oligopolistic market that both impede or serve to hinder successful business development and revenue growth. Political factors vary in this industry, which are negated from analysis due to the diversity of cultural, regulatory, and economic conditions differing in most Asian destinations.
16 pages (4000 words) Essay
However, the fact that the underlying principle in auditing is the concept of ‘opinion’, leaves the process of auditing with much to be desired, considering that conflict of interests or biased opinions have arisen from the auditing firms in relation to the truthfulness and accuracy of the transactions and financial reporting of their clients, eventually resulting to financial crisis, scandals and company failures that could eminently have been avoided, should the auditing reporting and opinion have been fair and balanced (Deloitte, 2012 p2).
6 pages (1500 words) Essay
An Empirical study of determinants of capital structure of non-financial companies in Egypt before and after the financial crisis
Similarly, the economy of countries like Russia has also been affected and Government intervention prevented the further decline in economic activity. This indicates that the cross border affect of the
11 pages (2750 words) Essay
In April 2014 the European Parliament has voted for bringing mandatory auditor rotation into the EU region. European-listed companies, financial institutions, and banks will have to hire new auditors every 10 to 24 years. Appointment of a new auditor every decade can be extended in cases when companies appoint another audit firm.
8 pages (2000 words) Essay
Most of the cases the specific purpose is providing securities and reducing risk free factors within the organization. Usually a qualified
9 pages (2250 words) Essay
Analysis of the marketing strategy of economy chain hotel industry: based on a UK hotel chain case study
on in China is marked by traditional full-service framework which is very strong in offering guest room function but has a weak provision for ancillary facilities. Its target market are the students, commerce travelers and its local populace. Investment in the Chinese economy
40 pages (10000 words) Essay
The Effect of Internal Audit Reports to Stakeholders on Audit Quality and Earnings Performance: An Empirical Study of the Companies Listed on the London Stock Exchange (LCE)
h to evaluating and improving the efficiency of the company’s governance, internal controls, and risk management (Institute of international Auditors, 2010, p. 1). The quality of the audit plays a vital role in maintaining an efficient market environment. However, an
10 pages (2500 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Click to create a comment
Contact Us