Auditor Dismissal And Audit Quality Research

Nowadays, the demand of high quality accounting information is increasing on the markets, and the accounting standards gradually become reconcile with the economic globalization. Auditors, acting as the police of high quality accounting information during its producing process, play an important role in market economy. But they must bear the pressures from all sides of interest-related parties when they are practicing auditing. It has been a hot topic that impairment of auditor independence and even auditing quality arises from the dismissals of auditor. This dissertation studies on the motivations of auditor dismissals and the consequences from dismissals. On the methodology, we try to combine normative and empirical research together and regard empirical research as principle. The main content includes : theoretical analysis of how auditor dismissals affecting the auditing quality; the motivations of auditor dismissal and the consequences of dismissals of auditor; the effect of board structure on the decision of auditor dismissals. It tries to answer the following questions: whether the auditing independence and quality would be impaired when the auditor face to the threat of dismissals? If auditing quality is impaired by auditor dismissals, and how to restrain if by punishment mechanism? By using empirical method, this paper tries to find out the real motivations of dismissals of auditor, and if the auditing opinion would be shopped through the dismissals. Are there any defects in board structure of the corporations that dismiss auditors arising from opportunism motivations? If there are defects, how to improve the board structure?The structure of this dissertation follows:Chapter 1 IntroductionChapter 2 Literature review on the auditor dismissalsChapter 3 Auditor dismissals and auditing quality: An analytical frameworkChapter 4 Auditor dismissals and economic consequences: an empirical analysisChapter 5 Auditor dismissals and board structure: an empirical analysisChapter 6 Conclusions , implications and future research The main contributions follow as:·As the auditing contract is incomplete, the clients would hold up the auditor, even to dismiss the auditor, when they have divergence on the accounting policies,...