Comparative Studying On The Audit Quality After Accounting Firms Switching

In recent years, as the phenomenon that the listed companies in our country are changingCPA firms has increased year by year, the influence of this phenomenon on audit quality willbecome the problem that the scholars highly concerned for. After sorting the related literatureat home and abroad, this article analyzes the reasons, the characteristics and the trend of thelisted firm’s change， and research the influence of it. Based on this theory， this articleinvestigates the A shares listed companies which changed CPA firms in2008and2009，andputs forward relevant hypothesis，combining with the influence factors on audit quality fromthe change of CPA firm. This article conducts the regression analysis by using Eviews3.1software to test and verify the comparative study of the audit quality which the samplecompany changed before and after under the different changing reason of influence.After empirical study， it was found that because of financial difficulties caused by thechange of firm,，the listed companies modify the audit opinion for whitewash statements andthis often leads to the listed company’s audit quality become lower than before. If that thelisted companies change the CPA firm is due to the change of the real stockholder or the greatrecombination of important property， the listed company of audit quality will decline afterswitching. When the SASAC relevant regulations result in mandatory change, because it is notthe company itself will， then the audit quality of the listed company unchanged or rise. If thechange results from different level，large-scale firms generally can ensure the high level ofaudit service quality. So the listed companies change to the big firm will lead to quality to rise.Finally， based on the conclusion of this research,，the writer puts forward the relevantregulatory proposal.