This paper focuses on the reform of accounting standards in China in 2007 and investigates its impact on equilibrium pricing in the audit market. We find that the concentration of the audit market and the probability of issuing modified audit opinions do not significantly change, but that audit fees increase significantly after the adoption of the new accounting standards in China. Deeper analy...

This study examines the association between ownership structure and audit fess. Especially, this study focuses on the ownership structure measured by the divergence of control and ownership. If an owner owns a company through the pyramidal structure, it is possible that the voting rights of the owner are greater than the cash flow rights of the same owner. The difference could influence the fir...

We examine honesty and credible auditing in firm-investor relations in a repeated game of imperfect information, embedded in a general equilibrium framework. Informed auditors enhance credibility over a range of audit fees – despite the auditor’s incentive to collude – provided the probability of detection is imperfectly correlated across clients. Auditing can enhance growth especially for a re...

We study the impact of transfer pricing rules on sales prices, firms’ organizational structure, and consumers’ utility within a two-country monopolistic competition model featuring source-based profit taxes that differ across countries. Firms can either become multinationals, i.e., they serve the foreign market through a fully controlled affiliate; or they can become exporters, i.e., they serve...

With the rapid development of capital market, competition listed companies is intensifying, pressure faced by enterprises becoming more and obvious, financial fraud also emerging, problem related party occupation increasingly prominent. The increasing number frauds has not only reduced fairness markets, but triggered a crisis public confidence in effectiveness accounting firm audits. Therefore,...

The AICPA Special Committee on Assurance Services was set up in response to a decline in the market vitality of the audit. (See Elliott 1994a and 1994b for background.) Our purpose is to develop ideas and initiate steps to refurbish the profession's product. This mission was conceived in response to the current and emergent audit/assurance environment, the obvious context for considering the vi...