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Relationship Between Audit Quality And Auditor Size

Posted on:2003-03-04Degree:MasterType:Thesis
Country:ChinaCandidate:S WangFull Text:PDF
GTID:2156360092471251Subject:Business Administration
Abstract/Summary:PDF Full Text Request
When the audit industry got into a distrusted phase all over the world, CSRC (China Securities Regulatory Commission) enacted a law "No. 16". The law, which called "Double Auditing System", arose a lot of controversies. This paper uses the audit fees studying framework of Simunic, via the comparison of audit prices and product differentiation among large-scale native audit firms, small-scale native audit firms and cooperative audit firms, to search for the real face of the China auditing market.The conclusion is that there is no product differentiation between large and small native audit firms, the cooperative firms provide the same product with a higher pricing level than the native firms. The native audit firms are infants that can not grow up. It is because the market lacks the demand of independent audits. For this reason either, the cooperative firms behave no better than the native firms. So the Big Five firms will do. To change status quo, we should improve the capital stock structure and the civil law responsibility of the audit firms.It is a typical empirical literature configuration. Chapter 1 introduces the studying motivation and problems to solve. In chapter 2, the relation between audit firm size and product differentiation is discussed at first, then the Simunic studying framework and some correlative articles. Chapter 3 is the core including the univariate test and multivariate analysis of the subject. The author analyses the result in the last chapter.
Keywords/Search Tags:Audit Fees, Audit Quality, Auditor Size
PDF Full Text Request
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