Study On The Behavior Of Voluntary Auditor Switches Of Listed Companies In China

In recent years, with the constant development of our country's security market, auditor switches have occurred frequently, which has hidden a great deal of illegitimate competitions and auditing independence impairment. This incident has already been concerned by the market supervisal department, the academic circles, the news media and even social masses. In well-developed security market, the research of auditor switches has a history of several decades and a lot of research achievements have been obtained. Because Chinese security market started relatively late, the research on auditor switches in our country started in recent years. It has important realistic meaning to study on the behavior of voluntary auditor switches of listed companies in China.After reviewing the relevant literature, the author analyzes the theory, the environment and the current situation. By using the descriptive statistical analysis and the Logistic regression analysis, the author examines the influence factors of auditor switches by compiling the samples of the voluntary auditor switches in 2004 and 2005 and finds that: the modified audit opinions, the financial distress, the auditor's regional characters, the change of general manager or director of the board and the audit reports delay are the major influence factors of voluntary auditor switches. But it does not find the significant correlation between the audit committee and the auditor switches. Then, the author analyzes the economic consequences of voluntary auditor switches. Finally, the author proposes some constructive supervision suggestions according to the preceding result of study and the current situation of China, in order to build the long-term supervision mechanism of the behavior of voluntary auditor switches.