TITLE:
“Internet+”, Entrepreneurs’ Investment and Audit Fee
AUTHORS:
Hongyu Tao
KEYWORDS:
“Internet+”, Entrepreneurs’ Investment, Audit Fee
JOURNAL NAME:
Modern Economy,
Vol.11 No.1,
January
17,
2020
ABSTRACT: In the Internet era, the real economy and the
internet are deeply integrated, and the “Internet+” business model comes into
being. Under the modern risk-oriented theory, the risk of customer material
misstatement becomes an important factor that auditors focus on, and also
becomes the starting point of audit execution and audit pricing. Investment
behavior is certainly a factor that auditors need to mainly focus on when
assessing the risk of material misstatement. Based on the background of the
enterprise’s implementation of the internet business model and drawing on the
existing research results at home and abroad, this paper takes the
non-state-owned listed companies in 2013-2018 as the research sample, and uses
the modern audit risk-oriented theory. The investment behavior is divided into
two parts—the financial investment and long-term equity
investment to research the impact of the two types of investment on the audit
fees from the theoretical and empirical perspectives. Besides, we also analyze
the adjustment effect of “Internet+” on the relationship between investment
behavior and audit fees. Studies have shown that the level of enterprises’
investment will significantly increase audit costs. Further research shows that
“Internet+” strengthens the relationship between corporate investment behavior
and audit fees.