Empirical Research On The Effectiveness Of Alternative Index Of Audit Quality

Audit quality is an independent audit of the most important field of study a concept is. DeAngelo (1981) to present its classic definition, audit quality is the auditor of the audited objects found irregularities in the accounting system and public disclosure of such violations of the joint probability. Because the concept of audit quality is abstract, that is not their direct observation and measurement, and therefore in need of alternative indicators to measure the quality of auditing. At present, at home and abroad on alternative indicators of audit quality are mainly the following:①audit size.②audit fees.③degree of earnings management.④non-standard audit opinion.⑤audit litigation.⑥penalty times.⑦firm's organizational form.⑧independent audit of the market reaction.⑨the relationship between corporate governance structure.From the current research perspective, what alternative indicators of audit quality can be better to measure the quality of audits is inconclusive. In this paper, from 1998 to 2008 period, the Commission investigated and dealt with irregularities of listed companies as the initial sample, and then based on the sample characteristics, select one of three alternative indicators, namely, firm size and brand, non-standard audit opinions and earnings management of the extent of empirical test, indicating the effectiveness of each measure of the quality of audits. Corrupt company through the sample to verify the validity of indicators of audit quality alternative for the study of the paper characteristics, the current research in the field for the first time.This article uses SPSS13.0 for statistical analysis. On the selected three indicators, through the establishment of model to illustrate their effectiveness. The specific method is first carried out descriptive statistics, followed by single-factor T test, and finally Logistic regression analysis. Empirical findings found that:First, the non-standard views on the management of listed companies engaged in corrupt conduct with a significant positive correlation between, he incurs non-standard opinion issued by a listed company to administer the greater the possibility of fraud. Therefore, non-standard audit opinion as a measure of alternative indicators of audit quality to be effective.Second, the large-scale and branding firm and there is no direct relationship between the high-quality audits. Therefore, firm size and brand used to measure the quality of audits is invalid. Third, the degree of earnings management and non-standard audit opinion on the significant positive correlation between the. Accruals can be greater maneuverability, was non-standard audit opinions issued by the greater the likelihood. Which can show that with the maneuverability accruals to measure the level of audit quality to be effective, is an effective alternative indicators of audit quality.