Abstract:From the perspective of audit pricing model, this paper discusses the relationship between the content of violation announcement and audit fee, and further analyzes the mechanism of audit fee induced by violation. The study finds that the heterogeneous content of violation announcement will have a differentiated impact on audit fees. The severity and diversity of violationand the severity of punishment measures will significantly increase audit fees, while the diversity of punishment measures will not. Further, the corporate violation increases audit fees through two parallel intermediary paths of “audit cost” and “risk premium”, and the path of “audit cost” will be significantly adjusted by such variables as the size of the firm, the length of the term, whether to change the firm or not. The research shows that the text content of violation announcement can help auditors evaluate risks, and that there are differences in the mechanism of violation on audit fees in different situations.