The Empirical Studay About The Financial Restatement And Auditor Change Of Listed Company In China

With the financial restatement is becoming more frequent and widespread phenomenon, scholars began to study the issue of financial restatements and the emergence of a large number of documents. Previous research has focused on two major areas of the financial restatement of the influencing factors and economic consequences. However, as the indispensable external audit mechanism of corporate governance and financial restatement relations rarely involved Dinancial restatement Empirical Analysis of the impact of the auditor change, and further distinguish the different causes of the financial restatement impact study of auditor changes to indicate the relationship that exists between the two. The purpose of the empirical research carried out Understanding auditors ability to correctly identify the financial restatement contains risks, and when the risk can not circumvent by adjusting the audit process, auditors will take a radical strategy of risk management-resignation or when companies are required to conduct a financial restatement, the auditor is more likely to change, is dismissed. Answer these questions through research, to better serve the auditors in practice to improve the risk sensitivity, efficient and robust risk management strategy to provide reference and provide a reference for the improvement of the audit market regulatory system has practical significance.This paper can be divided into three parts, the theoretical part, the empirical part and conclusion countermeasures part.The theoretical parts:the main financial restatements and auditor change literature review, the definition of the concept of the two related theoretical analysis (audit risk assessment theory, circumvent the audit risk measures theory, principal-agent theory). That part of the full text of theoretical research platform, the theoretical basis for the subsequent empirical analysis.Empirical parts:first the status of financial restatements, auditor changes, on the Restatement of China in recent years the financial auditor change occurred in the general situation and between the preliminary understanding; followed by further financial restatement and Auditor Change the relationship between the empirical analysis. Empirical research in this part of the proposed countermeasures later provided research support. The second part is carried out in the first part of the theoretical studies based on empirical analysis is the key part of the full text.Countermeasures part Conclusion:According to the first two parts of the overview of the theory and empirical analysis, come to the conclusion of this and put forward corresponding countermeasures and suggestions, also pointed out the shortcomings of the article.The results of this study show that a financial restatement, the company auditor changes are more likely to occur, and when the financial restatement is the core financial restatement, the company is more likely to occur the changes of the accounting firm. This shows that, on the one hand, firms are more likely to resign financial restatement companies, and the possibility of resignation of the different causes of financial restatements, significant differences exist, the firm will be selected use resignation strategic management inherent in the financial restatement risk, verify the change of auditor firm risk management motivation; the other hand, firms take the strategy of the audit pricing strategy and the audit opinion, and requested the audited financial restatement, the listed companies the dismissal of the possibility of firms improved significantly. Considering auditor change companies due to the existence of financial restatements, he served as auditor to undertake the audit of company, strategic risk management should be fully prepared to achieve the balance of risks and benefits.