Study On The Influence Of Partner Promotion Mechanism On Audit Quality In Accounting Firms

Along with our country economy by the high quality development stage of rapid growth stage,the market of certified public accountants audit the accounting information provided by the verification of dependence and the professional service demand more and more big,regulatory,market and public expectations of industry practice quality is higher and higher,certified public accountants industry development is an urgent need to shift from quantitative scale to quality-benefit type.To improve the quality of certified public accountants' auditing practice is a necessary part of realizing high-quality economic development.How to improve audit quality has always been a fundamental problem that regulators at home and abroad are committed to solving.After the enron incident,all countries tried to improve the audit quality and restore the confidence of the capital market by strengthening the supervision of the CPA industry,but it backfired.With the strengthening of supervision,the reputation of the CPA industry was in danger.This paper argues that strengthening supervision is a necessary means to maintain the healthy operation of the CPA market and an important way to improve audit quality.Due to audit the quality of professional competence and independence depends on provides audit services,certified public accountants,therefore,this paper holds that the root is that improve the audit quality of CPA human capital incentive,namely the accounting firm to choose what kind of carrying out audit services,certified public accountants and public accounting firms how to manage these certified public accountants,and human capital incentive for certified public accountants mainly comes from internal public accounting firm.The core of the internal governance system of "human-union" and "zhihe" accounting firms should be the partner promotion and withdrawal mechanism,while the partner promotion mechanism is an important incentive mechanism to promote certified public accountants to invest in human capital,which can be called the micro basis for accounting firms to improve audit quality.Therefore,this paper takes the influence of partner promotion mechanism on audit quality as the core research problem in order to find the key to improve audit quality.In recent years,under the encouragement of relevant policies,partnership is gradually becoming the mainstream organizational form of accounting firms in China.All accounting firms have carried out the practice of partner promotion for many years,which has accumulated empirical data for the empirical study of whether and how partner promotion mechanism affects audit quality in this paper.In view of this,this article USES the theory of inductive deductive method analysis why promotion partner and how to promotion,build a theoretical framework for the partner,promotion,through interviews with several securities qualification of certified public accountants combed the accounting firm partner,the present situation of the promotion,use public accounting firm partner eye check site promotion data,the empirical study partner whether and how to audit quality promotion,promotion mechanism and different partners how different influence on audit quality will be.The research conclusions of this paper mainly include the following four aspects:first,the audit quality of certified public accountants is significantly reduced after the promotion of partners.Because the significantly increased performance pressure after the promotion of partner by certified public accountants eroded the independence of new partners,the probability of new partners issuing non-standard audit opinions was significantly reduced,and the audit adjustment amount was significantly reduced.It is found that the influence of partner promotion on audit quality mainly exists in important clients.Second,partner promotion experience conditions can improve the quality of audit.Compared with accounting firms without experience conditions for promotion of design partners,the audit quality of accounting firms with experience conditions for promotion of design partners is higher.The positive correlation between audit experience and audit quality mainly appears in accounting firms with experience conditions for promotion of design partners.Third,limited sources of partner promotion can improve audit quality.Compared with accounting firms without restrictions on the sources of promotion of design partners,the audit quality of accounting firms with restrictions on the sources of promotion of design partners is higher.Fourth,the control of partner promotion frequency will reduce the audit quality.Compared with accounting firms without control over the promotion frequency of design partners,the audit quality of accounting firms controlled by the promotion frequency of design partners is lower.The function mechanism test shows that the control over the promotion frequency of design partners mainly affects the audit quality through the design of empirical conditions that affect the promotion of partners.