The Size Of The Accounting Firm, Industry Expertise And Audit Quality

Audit market in China is the emerging market, so different from mature foreignmarket research audit services this particular article is very meaningful. In recentyears, China’s accounting firm through alliances and mergers continue to expand thescale of the implementation of strategies to become bigger and stronger, we researchfirm scale industry specialization environmental conditions, the level of audit qualityis not only important theoretical The study at the same time be able to solve thepractical problems of survival and development of auditors career. But how firm sizeon audit quality, positive effect or a negative effect, variable selection, modelbuilding, and the choice of the sample size, the conclusions can not be unified. Researchon the impact of industry expertise on audit quality, domestic research has just started,still immature. Therefore, based on the unique status of the audit market in China,we choose the relationship between the scale of the2009-2011data research firm,industry expertise and audit quality three.The past Research, we describe the theoretical analysis of firm size, industryexpertise and audit quality three relationships. Secondly, sexual manipulation of theabsolute value of the accrued profits in China’s listed companies, the market shareof the four major international and industry-specific measure of audit quality, firmsize and industry expertise as select customer size, profitability The company’s growth,the proportion of the outstanding shares, the balance rate as control variables, buildthree related empirical model. Then, in2009,2010and2011, three A-shares on the MainBoard of the3650Annual Report of data samples, the use of descriptive statistics andmultivariate regression analysis method to study. Found that the final results: thescale is favorable to improve audit quality assurance, the larger the firm, the higherthe quality of audits; industry expertise to improve the quality of audit services,and the more it can play a positive role in the larger market share of industry experts;different sizes firm, industry expertise and industry experts on the role of the firmaudit quality differences. Finally, based on the empirical findings, a constructiveregulatory proposals.