A Study On The Industry Specialization Operation Of Independent Audit Service

Audit quality is the foundation of the survival and development of the certified public account. As it is indicated, the quality of independent audit is relative to the auditor litigation, auditor brand, auditor industry specialty, auditor independence and auditor scale and so on. The study of auditor industry specialty is an important aspect of the study of auditor market. Generally speaking, if an auditor has the ability of industry specialty, it can know the audit work of this industry well, and this can contribute to the auditor quality. In fact, the industry specialization audit can lead to the industry specialty. It shows that the auditor should be absorbed in an industry (or some industries) audit, so the auditor will own enough audit resources in the industry that the auditor is absorbed in, and the auditor will be engaged in the independent audit industry specialization operation.The independent audit industry specialization operation is a very important market strategy of the auditor, and it is an inevitable market phenomenon along with the development of audit market. We can find that the reasons of the industry specialization operation are complex. In addition, the influence of industry specialization operation is also complex, and it is beneficial for the auditor quality, and it also have some other market effectiveness. This article studies the industry specialization operation, considering the importance of the industry specialization operation and the lack of the theory. According to the industry organization theory, this article analyzes the reasons by the three perspectives: auditor demand, auditor supply and auditor supervisor. Then we explore the market effectiveness of industry specialization operation, and the results show that there are not obvious market characteristics of industry specialization operation. But we also find industry specialization operation is important to the audit market, and industry specialization operation is also dangerous to the audit market. On the whole, the end of this article puts forward some suggestions to our audit market, if we want to develop industry specialization strategy, we must develop effective audit market, and develop big scale accounting firm, and develop the ideas of industry specialization strategy, and strengthen the supervisor on the industry specialization operation.