Demand for Audit between Companies

Based on information disclosure mechanism,there should be demand for high-quality audit.Is this applied to China securities market? Do good intend to choose higher-quality service? Focused on this question,this paper analyzes the demand for high-quality services,using the theories of size and qualityand audit fees and quality.This paper first defines good and bad companies,then chooses 94good and 93bad from 1222 listed companies,using the data of listed companies in 2003.At last this paper contrasts the accounting firms of these two kind companies by auditor size and fees,and concludes that good need high-quality services more.This conclusion shows us that the securities market needs high-quality services,but the demand is not enough.