TITLE:
Tax Avoidance, Property Rights and Audit Fees
AUTHORS:
Nianjia Hu
KEYWORDS:
Tax Avoidance, Audit Fees, Property Rights, Audit Risk
JOURNAL NAME:
American Journal of Industrial and Business Management,
Vol.8 No.3,
March
8,
2018
ABSTRACT: Tax avoidance leads to high information opaqueness of enterprises and weakens the
quality of accounting information. Auditors need to implement additional
auditing procedures to control audit risks that may arise from tax avoidance,
thus charging higher audit fees. Based on the trend of risk-based auditing and “deep
pocket” theory, this article takes the 2012-2015 A-share listed companies in
Shanghai and Shenzhen Stock Exchange as a sample to explore the relationship
between tax avoidance and audit fees, then considers the influence of property
rights. Our study found that the degree of corporate tax avoidance and audit
costs are positively correlated, and compared to state-owned enterprises (SOEs), the relationship
in non-state-owned enterprises (non-SOEs) is more pronounced. This article may be
of some reference to regulators and audit pricing.