Financial Restatement of Listed Company and Pricing of Audit Service--A Concurrent Review of the Promulgation Effect of New Auditing Standards
HU Nan wei1, CAO Qiang2
(1.School of Management, China University of Mining & Technology, Beijing 100083, China|2.School of Accountancy, Central University of Finance and Economics, Beijing 100081, China)
Abstract The authors attempt to analyze auditors’ reaction to financial restatement based on audit fees. The research finds that auditors charge higher auditfees for firms which disclose financial restatement significantly. And auditorspay more attention to the financial restatement caused by irregularities. Meanwhile the promulgation of New Audit Standard enhances the auditors’ reaction to financial restatement. The results indicate that audit is an effective exterior corporate governance mechanism and the new audit standard enhances audit functionof exterior governance.
HU Na-Wei,CAO Jiang. Financial Restatement of Listed Company and Pricing of Audit Service--A Concurrent Review of the Promulgation Effect of New Auditing Standards. Economic Survey, 2011, 28(1): 074.
2011, Vol. 28 
