Abstract:Audit cost and risk premium are two important factors that affect audit pricing. This paper investigates the effect of stock rights pledge of controlling shareholders on audit pricing strategy, using a sample of list companies from 2007 to 2014 in China, and tests the mediate of ownership, auditor characteristic and legal environment. We find that the relationship between stock rights pledge of controlling shareholders and audit pricing is significant positive, and the higher the proportion of stock rights pledge, the higher the audit pricing. Moreover, in the private enterprises, in the companies audited by big 4 and in the high legal environment, auditor pricing more for the companies with stock rights pledge of controlling shareholders. The conclusions indicate that auditors can recognize the risk of stock rights pledge of controlling shareholders and adjust the audit pricing strategy.