The Study On The Correlation Between Auditing Collusion And Auditor Tenure

In 2001, the Enron event shocked the world, the following investigation discovered that the immediate reason was the serious plot behavior between Enron company and Andersen accounting firm. Especially, their 16 years'cooperation relation caused the profound ponder that whether auditor tenure would affect the auditing collusion. In recent years, correlative researches have increased along with it, but the majority was the theoretical analysis, and the empirical tests are rare. Based on the above reasons, the paper studies on the correlation between auditing collusion and auditor tenure using the empirical test on a basis of theoretical analysis, hoping to provide supervision and management of our country's stock market with evidence support and policy suggestion.The research work divides into three parts, corresponding research content and conclusions as follows:First part includes 1st chapter and 2nd chapter. Among them, the 1st chapter proposes the research thought and research frame based on the elaboration of the research question and the review of correlative research. The 2nd chapter takes the entrust agency theory and the public choice theory as the basis, analyzes the production mechanism of auditing collusion and the relationship between auditing collusion and type of audit opinion, lays the foundation of the following empirical research.Second part includes 3rd chapter and 4th chapter, which are the core part of entire paper. Among them, the 3rd chapter forecasts the audit opinion of companies listed in A stock market from 2003-2005 year using the improved Lennox audit opinion, finds 66 research samples of auditing collusion .The 4th chapter uses the CSMAR database to pair a control sample for each research sample, and inspects the correlation between auditing collusion and auditor tenure through paired samples'T-test and Logistic method, discovers that the long (short) auditor tenure in relation to the medium length auditor tenure is easier to have the auditing collusion. In order to inspect the rationality of auditor tenure division, the paper carries on the sensitive analysis to the auditor tenure division, discovering that the auditor tenure division doesn't affect the accuracy of conclusion.Third part includes the 5th chapter, it mainly summarizes the empirical research conclusion of second part, and puts forward some correlative proposals of supervision and management based on the front theoretical analysis. These policy suggestions include:①Implements the compulsory rotation of accounting firms, and establishes the limit of auditor tenure;②Enhances the punishment of rule violence and its execution efforts.