A Study On The Impact To Audit Quality Of CPA Firms From Different Areas

With gradual setting-up, the reform of the state-owned enterprise and flourishing development of the security market in the market system, the demand for auditing and discerning of the Certified Public Accountants (CPA) has been increasing over past decades. CPA plays an important role in the economy to keep national macro policy implementation, maintain capital market operation, and protect investor interests of the public. Meanwhile, it also became one of the hot topics discussed in the Accounting circle and professional research. Currently, though our country's audit quality has been improved greatly, part of the listed companies'accounting information lost truth, even cheating is still serious, which made negative effect to our capital market to a certain of extent. CPA's independence, auditing quality hence have been incredulous and criticized. The academe made a large amount of research to the audit quality, and gained great meaningful study achievements. Based on the pre-condition of domestic and international research of audit quality, this paper analyzes the conception of independence of audit and audit quality. It puts out earnings management is the effective evaluating standard of audit quality of listed companies in China. It does empirical study to verify earnings management of listing companies to analyze current status and influential elements to the audit quality about the CPA firms from different areas in China, according to our country's data of listed companies and offers countermeasure of improving the audit quality in China.There are four parts in this paper. Corresponding contents are as follows:The first part is about the relevant theories of audit research, including the charpter1, 2. It analyzes the connotation, influential elements to the audit quality, and also has reviewed and analyzed the relevant basic theories related to auditingThe second part is mainly about the impact of the locality on audit quality, and analyzes the current status of audit quality and the causes in China, it contains the local CPA firms and international firms such as"BIG 4". The status needs to be improved.The third part of the paper which includes charpter4, 5, is the most important in this paper. It does an empirical study about the audit quality of the local CPA firms from different areas in China with the Jones Model and some other models.The fourth part comes to the conclusion that there is some significant difference between south and north but not significant between east and middle-west, and puts forward a series of policies and suggestions according to the conclusions above. These policy proposals include how to get a good supervision of audit and suggestion for how to consummate audit market.