The Empirical Research On Auditor Changes Of China

With the development of stock market, auditor changes in listed companies has increased every year. Especially since 2005, over 150 listed companies have dismissed their incumbent auditors every year. Auditor changes is accompanied with the adverse economic consequences which is the focus in theory and practice. This thesis mainly studies the quality of the disclosures on changes of auditors as well as influencing factors of auditor changes in listed companies in the latest two years.The introduction illustrates research background, the significance and something constructive. Based on a general review of the foreign and domestic research and analysis of changes in audit relationship, the author gives descriptive statistic for the quality of the disclosures on auditor changes during 2002 to 2007 and finally discovers some faults such as the inadequate disclosed information and the reasons for changes are not true. At the same time, empirical research has been done to influencing factors of audit changes during 2006 to 2007 which finds that non-standard audit opinions, the audit fee are still the main influential factors of auditor changes. While audit areas has less impact on that than usual. In viewing of the growing demand, accounting firm set up its branch in customers' area. In addition, the author finds that the disclosure time of the annual financial report for the listed companies with audit changes is latter than the other companies obviously. This is mainly for listed companies to consider the adverse economic consequences, or with the auditors conspiracy to whitewash financial statements and delay statements at the time, or replacement of auditors to re-audit, which is bound to spend more time and energy, may result in statements reported a time lag. At last, the paper has put forward some related suggestions according to existing problems in information disclosure and present situation of audit market.