Xiaowu Lu, Wanjiao Jia, Shuoshuo Bi
School of Management, Shanghai University, Shanghai, China
This paper takes China's A-share non-financial listed companies from 2018 to 2020 as a sample, and examines the impact of the implementation of the new Securities Law on audit fees. It is found that, compared with companies with good internal control quality, the audit fees of companies with poor internal control quality have increased more after the implementation of the new Securities Law. This phenomenon is more obvious when the agency cost of the company is high, the analyst's attention is low, the client is not important to the firm and the audit market concentration is low. This paper not only enriches the research on law and auditor's behavior, but also provides evidence for the implementation effect of the new Securities Law.
Securities Law, Audit cost, Internal control quality, Audit risk premium
Xiaowu Lu, Wanjiao Jia, Shuoshuo Bi. Implementation of the New Securities Law and Audit Fees. Academic Journal of Business & Management (2022) Vol. 4, Issue 13: 46-58. https://doi.org/10.25236/AJBM.2022.041307.
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