Variable Type

Name

Symbol

Variable Definition

Interpreted variable

Audit pricing

Lnfee

Natural logarithm of annual audit fees

Explanatory variables

Other comprehensive income

OCI

Natural logarithm of the absolute value of other comprehensive income

Auditor practice experience

Experience

Average number of years of signed auditor practice

Control variable

Audited unit

ROA

Return on assets, annual net profit divided by average total assets

Rec

Accounts receivable ratio, total accounts receivable at the end of the period divided by total assets at the end of the period

Inv

Inventory share, total inventory at the end of the period divided by total assets at the end of the period

Cur

Current ratio, total liquidity at the end of the period divided by total current liabilities at the end of the period

Size

Company size, natural logarithm of total assets at the end of the period

Mb

Market value book ratio, ending market value divided by book value of total assets at the end of the period

Level

Asset-liability ratio, total liabilities at the end of the period divided by total assets at the end of the period

Loss

Loss situation, if the net profit is less than 0, take 1; otherwise take 0

Top10

The concentration of equity, the sum of the shareholding ratio of the top ten shareholders

Audit firm characteristics

Opinion

The type of audit opinion, if it is a non-standard audit opinion, take 1; otherwise, take 0

Big4

Virtual variables, if the audit of the "big4" accounting firm takes 1, otherwise take 0

Annual variable

Year

Annual dummy variable

Industry variable

Industry

Industry dummy variable