An Empirical Study Of Audit Quality Influences On Discretionary Accruals

Discretionary accruals are very important accounting earnings data, which can reflect information of the stock market and company's potential economic worth. Listed companies of our country carry on earnings management is more and more general at present, they will often carry on earnings management (mainly handle discretionary accruals) in IPO, ration shares, increase issues in stocks and make up deficits, which cause accounting information to be distorted. Improving audit quality may increase the credibility of the accounting statement. At first, I reviews the relevant documents both at home and abroad in this text, utilize these existing research approaches to combine our country's peculiar research background with the conclusion, I have proposed 3 research supposing 。 Using the revise Jones model calculate out discretionary accruals, accounting surplus divide cash flow, nondiscretionary accruals, discretionary accruals, using audit quality (auditor sizes weigh audit quality, market share in the top ten is "big10", on the contrary is "nbig10") as control variables of discretionary accruals, then multiple regression analyze, the result of study found:1."Big10" is still lower to tolerance degree of earnings management than "nbig10" in auditing market of our country, indicated the improvement of audits quality can restrain excessively controlled of earnings management.2. Audit quality is higher, discretionary accruals is less? It is remarkable to show that the pertinence of discretionary accruals and returns is more remarkable on the stock market, and show that the pertinence of discretionary accruals and future profit ability is more remarkable in company's future state.