Audit Quality Of Listed Companies In China Empirical Study

Audit quality is to ensure the quality of financial information and improve investor confidence in capital markets, a very important factor. High quality audit reports to restrain management's manipulation of financial reporting fraud role. Therefore, all along, the problems related to audit quality by theorists and practitioners of general concern.This paper uses a combination of theoretical and empirical research methods. First of all the way through the literature review, the conclusions of previous research are summarized and analyzed, and from the theoretical analysis of the current audit quality factors. In summing up the previous academic study and understand the new audit standard was proposed based on four assumptions, and select the appropriate proxy to China's Shanghai and Shenzhen City, 2007,2008,2009 three listed A share market as the research sample, the use of Logistic regression audit quality of listed companies factors affecting the empirical analysis and research.Empirical results show that: the size of firms and improve audit quality is not appropriate; listed company the greater the business risk and financial risk, auditors stronger professional competence, the higher the audit quality; due to lack of independence of the Independent directors in corporate governance structure and can not play the role of full independence, did not play a role in improving audit quality.On the basis of empirical research, the article concludes with the audit of listed companies to improve the quality of policy recommendations: improving the independent director system, improve the independence of independent directors; rationalize the internal audit market regulatory system; strengthen the auditing standards and to continuously improve the audit management and technical methods perish. Hope that improvements can be achieved to improve audit quality.