Abstract:This study investigates the impact of multiple heirs on audit fees in family firms before intergenerational succession, using a sample of Chinese Ashare listed family firms from 2004 to 2023. Empirical results demonstrate that conflicts among multiple heirs prior to succession significantly increase audit fees. Mechanism tests reveal that this effect operates through three primary channels: exacerbating operational risks, elevating auditors perceived risks, and increasing audit resources allocation. Heterogeneity analysis indicates that the positive effect of multiple heirs on audit fees is more pronounced when family firms exhibit higher business complexity, operate in regions with stronger legal frameworks, or are deeply influenced by Confucian culture. Further analysis shows that while the presence of multiple heirs raises audit fees, it concurrently reduces audit quality. This suggests that the fee increase stems primarily from risk premiums and audit efforts rather than enhanced audit service quality. Postsuccession, however, conflicts among heirs diminish, supervisory synergy strengthens, and the original multiheir structure exerts a suppressive effect on audit fees.