Independent Audit Quality Of Listed Companies In China And Earnings Management Relations

At present, China's listed companies generally earnings management, first with seasoned equity market right or undertake profit smooth, etc. Are all causes of earnings management main motives。The occurrence of this behavior greatly reduced the quality of financial accounting information, makes the investors and many stakeholders to an enterprise's financial position and operating performance of the judge then happen decision-making errors phenomenon. Because of earnings management exist widely in Chinese listed companies, so that the interests of investors are much damage, greatly hindered the standardization of the Chinese securities market in the process. Certified public accountants audit of the listed company, the absence of earnings management or inadequate accounting fraud of listed companies is one of the important reasons for the common event, so, certified public accountants in independent audit process can keep its independence, and its independent audit quality discretion is the broad scholars an important aspect of research. Under this background, this paper hopes to independent audit quality and earnings management, this paper analyzes the research on the relationship between accountants audit work, whether the auditing reports issued by the content reflects the enterprise surplus management behavior, so that the audit report users through the audit opinions for enterprises to make type accurate judgment, meanwhile, confirm CPA audit work of enterprise surplus whether management ability showed the restriction role is expected. The research to improve the quality of the independent audit, play better external supervision function is of great significance.This paper firstly reviews the domestic and foreign relevant research, based on that study of the listed company earnings management concept definition, measurement methods selection to the audit quality and earnings management of theoretical analysis of the relation between, in conjunction with the relevant econometrics model, and then puts forward the two hypotheses, hypothesis 1:CPA can to a certain extent of earnings management audit out large degree of earnings management, the company issued non-standard audit opinions; Hypothesis 2:the "top 10" by the listed company by audit than non-"top 10" not listed companies'earnings management degree wants small. The hypothesis is multi-element linear regression analysis, this paper concluded that: controllable accruals absolute value and the audit opinion has significant relationship between the relationship and direct proportion, and explains the practice of certified public accountants have certain ability level, can audit the listed companies'earnings management behavior and report of in the audit report; By "top 10" accountant firms as auditing tasks listed company can manipulate accruals obviously lower than by "top 10" accountant firms as auditing tasks listed company can manipulate accruals, illustrates the "top 10'" by the listed company by audit than ten "audit" not listed companies' earnings management degree wants small.