Study On Relationship Between Accounting Firm Industry Expertise And Audit Quality

Audit quality is not only related to the development prospects of accounting firm, but also has very important significance for promoting the development of the capital market and maintaining the national economic life harmony. In recent years, the occurrence in a series of audit failure cases of audit quality had become an increasing concern of the theorists and practitioners, Study the impact of audit quality factors is increasingly becoming a hot research topic of the current audit areas. Audit quality depends not only on the both substantive and formal independence of accounting firm, but also on the professional competence of the accounting firm. As an important component of professional competence, the accounting firm industry expertise plays an important role in improving the quality of audit services, many foreign literature have reached similar results, in the background of immature capital markets in China and low specialized audit market, whether to cultivate the firm’s industry expertise is helpful to improve the quality of our audit, this paper is to explore the problem.This paper consists of six parts, in addition to the first part of the introduction and Part VI Conclusion core part of the remaining four parts of this article. Second part of the first audit quality and industry expertise related concepts defined, followed by measure of industry expertise to sort out and, by comparison, we have chosen the industry’s market share as a measure of industry expertise, the last of the accounting firm to cultivate the industry expertise to motivation analysis. On the basis of the second part of the third part of industry expertise and audit quality, further theoretical analysis, that the accounting firm industry expertise will help improve audit quality, and smaller compared to the larger accounting firms the accounting firm more industry expertise, motivation and ability, then leads to the assumption of this study to the theory of line. Then select the alternative audit quality of listed companies discretionary accruals profits as the dependent variable measure of industry market share, industry expertise as the independent variable in the control of listed companies, company size, operating conditions, the financial risk of the development capacity of steerable the impact of accruals on the basis of the empirical research model, and extract all a-share listed companies in2008and2010data sample. Part IV by using descriptive statistics, regression analysis, sensitivity tests and other methods come to the accounting firm industry expertise and audit quality is related to the scale of the accounting firm audit the company sample, industry expertise and the audited entity discretionary accruals was a significant negative correlation, rather than the size of the accounting firm to audit the company sample, industry expertise and the audited units discretionary accruals and there was no significant correlation. Combined with the results of the analysis of the fourth part, fifth part of the status of our industry expertise and go is described and illustrate the overall level of industry expertise to the development of China’s accounting firm, and the slow development, and use it as background from the industry environment and the accounting firm itself two aspects of the development of China’s accounting firm industry expertise, and recommendations to improve audit quality.This paper uses a combination of theoretical analysis and empirical research, analysis of the relationship between the accounting firm industry expertise and audit quality, empirical research hypotheses on the basis of theoretical analysis, using correlation analysis, descriptive statistics, analysis and multivariate the linear regression analysis and an empirical test of the hypothesis put forward. Empirical research process and its results is the integrated use of Excel and SPSS (Statistical Package for Social Science)19.0software, which in the multiple linear regression on the empirical model, this paper uses the linear regression method.The results show that:(1) in the control of the size of the listed companies, financial risks, business conditions and prospects for development, other factors, the accounting firm industry expertise can effectively inhibit the earnings management of listed companies, the accounting firm industry expertise and showed a significant positive correlation between audit quality;(2) the larger the firm, the more resources and ability to develop their own industry expertise, the greater the likelihood of its industry expertise, and have the industry expertise of the firm because of its advantages in the industry, but also more conducive to expanding the size and influence. Industry expertise through industry expertise before the Tenth Five-Year "accounting firm to audit the company sample, the more effective inhibition of the earnings management of listed companies, non-"15"accounting firms in the industry expertise and the listed company’s manipulation should be accrued profit no significant correlation between sex, although some of them also has the industry expertise, but because of their size and resource constraints, and difficult for the outside perception, industry expertise, the ability to not give full play to, and therefore listed in the inhibition of earnings management behavior, performance deficiencies.