Change Of Board Of Directors In A Financial Fraud Company And The Correlation Of The Change And Audit Quality Study

The board of directors often closely related with external audit financial fraud. Whether the change of the directors of the company is impact of audit quality, domestic and foreign current research is less. This paper firstly reviews and summarizes financial fraud, the board of directors and its modification, the audit quality and financial fraud chairman alteration and audit quality correlation related literature, then using 2002, for financial fraud - 2006 by CSRC, Shanghai stock exchange and Shenzhen stock exchange condemned announcement 123 home a-share listed companies as A sample, and matched by the control group, research on financial fraud was announcement interval after the year before in the third year of the announcement, uses matching sample t-test research in subsequent management changes to the board audit quality, whether there was significant difference with a control group of inspection, and establishes regression analysis model to study the board alteration and audit quality of relevancy. According to the analysis, the conclusion to the announcement from prior to the announcement of the year after the third year, financial fraud company's board has changed dramatically change, but financial fraud company board of directors for audit quality change has no significant impact.