Audit Industry Specialization And Audit Quality,

Auditor firms have developed very high industry specialization in Western countries. They control the industry specialization knowledge of their clients through specialization tragedy, and then acquire the specialization advantage in the client industry, improve the audit quality, earn high audit earnings. In this study, we conclude the overseas and inland results, innovate this area according to the researching situation about auditor firm industry specialization in our country, examine the relationship among auditor firm industry specialization, audit quality and investor protection, using the data of capital market. The result indicates that the clients of industry specialist auditors have lower discretionary accruals (DAC) than clients of non-specialist auditors. This can prove that industry specialist auditors have higher audit quality from one aspect and can better protect the investor. After that, we analyze the audit industry of our country, and find that our inland auditor firms are in a bad way. Their marketing share is getting less and less. In this study, we give the countermeasure from the aspect of auditor firm industry specialization, and we also give the suggestions about how to implement the auditor firm industry specialization.