The Research On The Correlation Between Non-audit Services And Audit Quality

With the development of the market economy environment, the service areas of Certified Public Accountant (CPA) were also constantly expanded. The certified public accountant firms provide the audit services, and they provide the non-audit services of check the capita and management advisory to the audit clients at the same time, In practice, the proportion of non-audit services and certified accountants office's profit is steadily on the increase, and it gradually replace the major work of CPA business system, that is audit services. But with the development of non-audit services, the queries from practicing community,theoretical circles and public are rising following that.Especially the Enron's collapse in the late of 2001 caused the closures of Arthur Andersen, which was one of the former international "five big" accounting firms, the community to argue away whether the development of non-audit services had a strong impact on audit quality. The audit quality is the premise of the Certified Public Accountant industry achieve sustainable development. Without audit quality, Certified Public Accountant industry is loss of meaning of its existence. From the restoration of chinaese Certified Public Accountant industry in the 1980s, with the quickly development of the industry, there were some accounting fraud cases, such as "yinguangsha","zhengbaiwen",which influenced the audit quality greatly. In addition, the development of non-audit services in china is still in its primary stage. non-audit services were developed actively in western countries and they have became the effective way for the accounting company achieve sustainable development. Where should Chinese non-audit services come to? So it is of great importance to have a further research on the "the influence of non-audit services on audit quality" from our country's reality and use western countries'research findings and practical experience as a source of reference.On the whole, the main contents of this paper are as follows:Chap.1 introduce the research background of the paper,review the interrelated research of both home and abroad from time sequencing and gives a brief introduction of innovations and unique features of the paper. Chap.2 introduce the basic theory of non-audit services and audit quality, which include the related concepts and basic theory of them. Chap. 3 is the standard research part of the paper, which describe the present situation of non-audit services in china. And from some aspects introduce the necessity of China develop non-audit services in current special background. The last part gives a systemic analysis to non-audit services and audit quality. Chap.4 is the empirical study part of the paper, which choose the data of hushen listed companies in 2006-2008, and use Logistic regression analysis to test the correlativity between non-audit services and audit quality. Chap.5 is countermeasures advice, The research result is that the company size, operating conditions and financial risks influence on the audit quality are controlled, the non-audit services will not influence the audit quality under certain proportion. some advices on our Chinese CPA industry how to develop non-audit services are proposed on the basis of theoretical research and empirical study,The main innovations and unique features of the paper:theoretical analysis and empirical study are used at the same time, reserch perspective is more Comprehensive.the paper gives a systemic introduction to the interrelated basic theory of non-audit services and audit quality, which enrich and improve the interrelated theory of them. In the empirical study part of the paper, the selected sample is divided into two parts to verify the relevance of non-audit services and audit quality of companies in different interval segment. So that it can provide empirical data for scale control of the future non-audit services in our country.