The Impact Of Traditional Culture On Auditing

Audit quality and audit fee have always been the focus of attention in the field of accounting research at home and abroad.In concrete term,the existing research mostly examines the impact on audit quality and audit fee from the corporate and individual levels.Recent literature believes that institutional factors will have an impact on auditing.Institutional factors include formal and informal institutions.This paper chooses traditional culture in informal institutions for empirical research.Chinese traditional culture is profound,and the traditional culture of each region is relatively stable and geographically different.This makes it convenient for us to measure traditional culture in various regions and classify traditional culture.Based on the existing research at home and abroad and the diversity of traditional culture,this paper explores the impact on audit quality and audit fee by dividing traditional culture into religious culture and human relationship culture.Foreign literature has been studied for a long time.The two key factors affecting audit quality are auditor’s ability and audit independence.The two key factors affecting audit fee are auditor’s efforts and litigation risks.This paper adopts 2012-2016 Shanghai-Shenzhen A-share listed companies to explore the impact on audit quality and audit fee by analyzing the impact of religious culture and human relationship culture on the four key factors.The study found that:(1)The stronger the religious culture of the listed company,the higher the audit quality of the company,the stronger the human culture,and the lower the audit quality of the company.(2)The stronger the religious culture of the listed company,the higher the audit fee of the company and the stronger the human relationship culture,the lower the audit fee of the company.This paper provides evidence that categorizing traditional cultures has different impacts on audit quality and audit fee,and expands the role of informal institutions in emerging and transition economies.