The Empirical Study Of Listed Companies' Voluntarily Audit Of Interim Financial Reports

Audit and accounting are inseparable, as a regulator of accounting information audit has been gradually developed, academic research on the audit also will gradually improve. However, most studies of current audit are based on the perspective of mandatory audit. The interim financial report for the voluntary audit of our research is relatively lack, particularly is empirical research. It is necessary to study our voluntary mid-year report on the audit of this unique phenomenon in depth.In this paper,127(times)A unit manufacturing voluntary audit mid-year report from 2006-2009 of the listed companies' as samples. At the same time, matching the 127(times)A unit manufacturing companies does not audit mid-year report as a control sample according to certain standards. Use logistic regression method, cross-section modified Jones model and multiple linear regression to analyse motivation and the economic consequences on the voluntary audit of listed companies by the mid-year report, combined with our unique system background, hoping to further improve the governance environment inside and outside of listed companies, and making the external independent audit to be the real business needs of internal spontaneous, so as to promote the continuous improvement of audit quality in China.The main results of this paper:(1)There's significant positive correlation between "corporate agency costs, asset-liability ratio and return on equity" of listed companies and audit demand; however the correlation is positive but not significant between the share ratio of the biggest stockholder and audit demand.(2)For China's listed Companies, the company of voluntary audit mid-year report compare to these without audit the mid-year has low level of earnings management and less manipulation of accruals. It concludes that the external independent audit can indeed control management's opportunistic behavior, and there are enhancing the reliability of the interim financial report.(3)The new guidelines' introduction of fair value measurement attribute does not affect voluntary mid-year report on the audit and the relationship between earnings management. And the fair value of the interim financial report does not affect the voluntary audit and the company's earnings management.