Studies On The "Report Competition" Of Accounting Firms

In modern society, as high degree of separation between the the owner and the operator of capital so that external auditors were introduced as a supervisor. That agent relation between owners and auditors make the auditor have more private information. As the existence of such private information, some of the customers always bribe some auditors of worse independence to provide more favorable audit report, then the "report competition" come into emergence inevitably. This "report competition" caused a direct threat to the interests of users of financial statements, as well as the allocation efficiency of capital markets, so it has a high value and practical significance to study the firms conspiration of the auditors and management as a result of bribery by the the customer.This article holds that the "non-audit services" is the most legitimate means of concealment of bribery. In recent years, the income of non-audit services firms accounted for the increasing proportion of total revenue to be "the protagonist" in the business system. With the rapid development of the non-audit services, the argue about the affect to the independence of non-audit services by the industry practice, the public's growing doubts, the outbreak of the Enron case at the end of 2001 cause the disintegration of Anderson, one of the original "Big Five" accounting firms. In the face of Enron'collapse, the Arthur Andersen'out-skittling, to the of the splitting of the non-audit services by the "big four", the world's "non-ban" boom, is the independence of non-audit service being affected? Does that lead to "report competition "?This article will be both theoretical and empirical to prove the existence of "report competition" in our country. First of all, this paper, using"principal-agent"theory and game theory, confirmed that the current non-audit service is the only means to the realization of " report competition". And this article get a classification of non-audit services, Secondly, on the review of domestic and foreign scholars'study to the affection of non-audit services to the independence of the audit, the impacting factors to non-standard audit opinion, the study has laid a solid The theoretical basis for the text after. Then through Logistic regression model, this paper confirmed the existence of our country "report competition" using our country's data of audit market. Finally, according to the results of the empirical analysis of this paper, this paper provided the suggestion for non-audit firm's standardization in the hope that they would further regulate China's non-audit services, expand the fields of business of Certified Public Accountants and promote the development of the whole industry.