The Research Of Relations Between Audit Tenure And The Independence Of Audit

Independent, objective, justice is a CPA occupation ’s creed and soul of survival anddevelopment. No matter what time, some large or small financial scandals have appeared,among them the famous is Enron and WorldCom Event, then which served on theiraudit Andersen firm went bankruptcy. This is the most that make people to begin toquestion the occupation0f audit, also let people to ponder the role of audit,and what theprinciple is. In2002the United States Congress enacted the" Sarbanes Oxley", putforward audit tenure system of rotation, then, China Securities Regulatory Commission,the Ministry of Finance issued" on the securities and futures business audit CPA periodicrotation thereof", also called CPA continuous for a related institutions to provide auditservices, not more than five years. The independence is particularly important, and theindependence’s factors of impact are also many, through analysis, this paper focuses onthe influence on the independence in audit tenure, the paper will make audit tenure to bedivided into CPA tenure and audit firm tenure to study and the relationship between audittenure and audit independence.Research on auditor tenure and audit independence relationship has practicalsignificance, this paper intended to draw in our country audit tenure and auditindependence relations, the study not only helps to establish the suitable tenure for ourcountry and to maintain the independence of the audit, but also contribute to thediscovery of our country and the developed countries of the audit service market thedifference, for our country’s development of independent audit and supervision of stockrecommendations.In this paper, combined with theoretical and empirical methods, using RUISIdatabase, selected in20022003, the Shanghai and Shenzhen A stock companys as theresearch samples, a total of331data, the main variables are two CPA continuous audittenure, auditor tenure, the company being a class ST financial distress, assets debt ratio,total assets turnover rate, whether earnings management. The fourth part audit tenureand audit independence: An Empirical Study on the relationship between design. Theaudit tenure as the three indicators, the independence of audit quantification as an indicator. And puts forward the research hypothesis, for behind the empirical analysis laythe foundation for. Constructing model, determined by Logistic logic regression model;the fifth part: audit tenure and audit independence relations empirical analysis. The mainuse of the descriptive statistical analysis, correlation analysis and Logistic regressionanalysis, demonstrates the audit tenure and audit independence correlation, based onaudit tenure and audit independence evaluation model of listed companies.This article through descriptive statistics, regression analysis concluded, audit tenureand audit independence between negative weak relationship between audit tenure, growthand does not cause non-standard opinions issued by the possibility of significantlyreduced.