Study On Audit Information Quality Based On The Noisy Information

This article holds that the fundamental purpose of audit activities is to provide the relevant information of the status of audited firms. Due to various factors exists, the audit information may include noise, and then the quality of information is in the decline. This paper starts with the basic concept of information and noise, and then researches on the audit information and the noisy information theory. Finally we take a empirical study of the audit quality of the information and noise problems in Chinese security market.Based on the meaning of information, the audit information can be defined: based on certain criteria, through certain procedures, auditors provide information to the parties concerned after going through the company's finance and other relevant circumstances .The information enables users to make the right decision. Based on this definition, the audit information should include the audit advice and the audited economy information after the audit report.Comparing various definitions of the current about audit quality, we believe that audit quality and audit information quality is dialectical unity. The concept of audit quality is the core elements of the audit information quality, and the audit quality information is the external performance of the audit quality. The audit information quality's yardstick includes decision-making usefulness, relevance, authenticity, impartiality and clarity.Noisy information is deviant status during the process of generating and transmitting information. The noisy information can be defined that the audit information in the process of audit information generating and transferring deviates from objective circumstance because of the abnormal factors interference. Audit noisy information will lead to the audit information being distorted the truth of information, and reducing the quality of audit information. Audit noisy information includes the related noise, authenticity noise, equal noise and transparent noise. To reduce the noise of information and enhance the quality of audit information, it is necessary to analyze the causes and measurements from above four aspects.Selecting data of non-standard audit opinion from Shanghai and Shenzhen stock markets in 2005, we take an empirical test of market reaction. It concludes that in (-9,6) window period, the market reaction of the audit opinion between the non-standard and the market standard audit opinion non-standard audit opinion has significant differences.Because my knowledge is limited, and the measure of audit information quality and the noisy information is a very complex issue, the paper'theoretical analysis and empirical study is only an initial attempt, and not enough in-depth and comprehensive, and in the future it need to be studied further.