Research on the Impact of Tax Evasion on Audit Fees of Companies in China

Yuwei Wang

2022

Abstract

Based on the value effect and agency effect of tax evasion, this paper discusses the relationship between tax evasion and audit fees by using the method of large sample study and least square regression. The regression results of this paper show that tax evasion increases the risk of the auditors, so they will increase the audit fees as a compensation, and the audit fees are positively related to the degree of tax evasion. This paper enriches the research on the effect of corporate tax avoidance from the auditor's perspective, and also provides institutional investors with countermeasures for corporate governance under different risk levels. For listed companies, they should establish a correct concept of tax evasion; and for accounting firms, they need not only to rely on the positive effect of tax avoidance under low tax evasion, but also to prevent and resolve the risk of management's opportunistic behavior under high tax evasion.

Paper Citation

in Harvard Style

Wang Y. (2022). Research on the Impact of Tax Evasion on Audit Fees of Companies in China. In Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME; ISBN 978-989-758-636-1, SciTePress, pages 257-262. DOI: 10.5220/0012029000003620

in Bibtex Style

@conference{icemme22,
author={Yuwei Wang},
title={Research on the Impact of Tax Evasion on Audit Fees of Companies in China},
booktitle={Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME},
year={2022},
pages={257-262},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0012029000003620},
isbn={978-989-758-636-1},
}

in EndNote Style

TY - CONF

JO - Proceedings of the 4th International Conference on Economic Management and Model Engineering - Volume 1: ICEMME
TI - Research on the Impact of Tax Evasion on Audit Fees of Companies in China
SN - 978-989-758-636-1
AU - Wang Y.
PY - 2022
SP - 257
EP - 262
DO - 10.5220/0012029000003620
PB - SciTePress