审计市场的供需理论

加拿大Assignment代写范文:“审计市场的供需理论”，这篇论文主要描述的是审计行为是一种由注册会计师执行的市场行为，而我们所讲的这个市场就是审计市场，会计企业是主要的供应商，而政府和企业则是作为需求者，供应与需求之间可以说是相互依存的关系，并举例了一个特殊的例子，那就是中国审计市场的供应与需求。

Demand-supply theory

Audit behavior, which is composed of the behaviors of certified public accountant, is actually a market behavior, and the market is audit market. In audit market, theresults of audit arethe products, which include the characteristics the same with ordinary products, and also their own distinctive traits. The supplier is mainly accounting firm. The demand sides include government, companies. There exist relationships and conflicts between the supply side and demand side, which restrict the balance of the audit market and also decide the audit pricing. Demand and supple are interdependent, andso do the supply side and demand side. In general, demand and demand side play a leading role in the market.

But in China, the supply-demand relationship is different, as the government intervention is serious and state-owned shares occupies the subject position. Jiang and Luo (2003) suggest that, in China, audit demand is mainly made by the government, instead of the demand of market. The audit of financial statements of list companies and other kinds of audits are always the demand of government regulatory agency, but not market. Therefore, the market share of accounting firms is determined by the recognition of government. The unreasonablesituation leads to the violation of market law, and the relationship of demand and supply is influenced by indirect political interference. In the capital market of China, the government has a height advantage. The difference between national investors and individual investors is that the state-owned shares’impersonalization, as the responsibilitiescannot implement to individuals, and they do not pay highly attention to account information. Another characteristic of state-owned share is that the share is non-tradable. Therefore, though the government cares about corporate information, there is little space for decision, so the demand for account information and even audit service is lost. In addition, the list companies in China are all transferred from state-owned companies, and their performance is not so good. When the large shareholders or dominant shareholders become the external controller, they would not try to get the real financial information though high quality audit service, instead, they would take advantage of independent audit to please the regulators to gain benefits, such as get listing quality, improve the IPO price.

According to economic theories, equilibrium price is theprice that makesthe quantity of demand equal to that of supply. In audit market, the audit fee also should be determined by the demand and supply of audit products. for list companies, decentralized owners cannotpurchase the audit products and choose audit suppliers themselves, and the actual purchasers are director board. There exists separation between audit demand side and supply side. The relation of audit supply side and demand side is realized through corporate governance structure. Effective corporate governance can make sure the demand side become the real participate of audit market, and link to the audit products suppliers, thus to decide theaudit fee. If the corporate is control by critical managers, adverse selection and moral hazard will occur, and the demand sides of audit product will loss the right to join in the market. Finally, the behavior will influence the relation of both sides, and restrict the fairness, efficiency and benefit of audit market, thus the audit fee will be changed.

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