Audit Fees and Information Transparency

• Main Authors: Hsu Kai-yi, 徐凱儀
• Other Authors: Shiue Min-Jeng
• Format: Others
• Language: zh-TW
• Published: 2007
• Online Access: http://ndltd.ncl.edu.tw/handle/22325436199902233499

碩士 === 國立臺北大學 === 會計學系 === 95 === Information transparency is part of corporate governance systems. No matter the practices, academics or government, more and more people pay more attention to this topic all over the world. Especially for managers of those companies which are going to issue equity through the international markets. The purpose of this study is to examine the relation between audit fees and information transparency. The advance of information transparency implies that higher enterprises value, earnings management behaviors declining, and lower agency cost expect for better corporate governance system. These signals express with the lower litigation risk to CPAs. The lower litigation risk indicates the lower additional cost that CPAs have to bear, therefore audit fees would decrease. In contrast, owing to the voluntary disclosure bonus point items of the information disclosure and transparence ranking system belong to annual financial reports for the most part. Accordingly, CPAs have to spend more time and devote more efforts when their clients disclose more information and then asking their clients pay more audit fees. Thus, we expect that there is a positive correlation between audit fees and the extent of information transparency. Research results show that there is a positive association between audit fees and information transparency. These findings imply that auditors indeed have to spent more time and devote more efforts to audit while their clients present more additional disclosures. That is, CPAs do play an accessory role in our society. The result is robust in consideration of endogenous variable problems in our research models.