The Analysis Of Auditing Market Concentration Based On Auditing Quality

In the background of more and more fierce competition in auditing market and consolidation of accounting firm, The paper study status and future of auditing market concentration to grope a direction for accounting firm of our country.We don't limit our point on the listed company, otherwise we set the point on accounting firm to study and analyze. The article is focus on two threads: one is apparent and the other is hidden. The apparent is auditing market concentration and the hiding one is auditing quality. Through studying the factor of auditing market——accounting firm, we can draw the conclusion of the status of auditing market of our country and the rules which the auditing market obeys. We test the effect of auditing market in different condition by the standard of auditing quality.We begin our discussion on the basis of the four hypothesis of auditing market concentration, namely"client demand","product heterogeneity,""economies of scale","price competition". Considering that some factors can demonstrate auditing market the relation between accounting firm's concentration ratio and auditing quality is Inverted U. and try to analyze the optimal interval of concentration ratio. Besides , we mainly study the industry specialization of accounting firm ,auditing market of IPO and the changing ratio of accounting firm. Above all the factors show the status of auditing market concentration in a wide range.In the last part, we give some suggestion according the empirical analysis which can help to promote the concentration of auditing market, improve auditing quality. And all the measures may exaggerate the competitive strength of accounting firm of our country.