Author(s)

Yufan Xie, Yuteng Xie，Sihui Xie

Corresponding Author

Yufan Xie

Abstract

By Adopting the newest concept of FSD score sourcing from the usage of Benford’s law, we include it as one of the decisive variables in the audit fees model designed in the 1980s. We want it to represent the probability of the occurrence of accounting fraud for the listed Chinese companies in A share market and then verify its relationship with audit fees. Our result shows good compliance with financial data to Benford’s law and there is no evidence indicating the association between audit fees and FSD scores.

Keywords

Benford’s law; Audit fees; Accounting fraud