An Empirical Research On The Effects Of The Audit Client’s Importance To The Auditing Quality

Since the nineteen ninties, the stock market broke out in a number of majorfinancial fraud cases, such as " red light industry "," qiongminyuan " and so on, sothat the audit quality problems have been the focus of the society; the beginning oftwenty-first Century, the outbreak of a series of financial fraud cases, set off a climaxof domestic scholars, research quality audit since then, audit quality issue has been thefocus of theory circle and practice circle.This paper uses the method of combining normative research and empiricalresearch, on the influence of audit client importance on audit quality were studied. Inthe normative study, the China Securities Regulatory Commission survey report andthe CICPA administrative punishment decision results have shown that our presentindependent audit quality is worrying. The low quality of the audit situation is causedby many reasons, are related to the demand for audit services, supply and regulators,but the influence on audit quality is the largest economic dependence. The auditclient’s more important, firm on the economy more dependent, this weakened theaccounting firm ’s power, make the audit staff in order to pursue the maximization oftheir own interests and to the audit client submission, the audit report issued on the "satisfaction". Therefore, only strengthen CPA negotiation skills to improve auditquality.In empirical research, this paper takes listing Corporation data of2009-2011assamples, with the type of audit opinion as a proxy for audit quality, customer assets asa proxy for audit client importance, and control of the relevant factors, and establishthe multiple regression model for empirical research on the influence of audit clientimportance on audit quality. Study results do not support the audit client and moreimportant, the audit staff can guarantee the quality of auditing hypothesis, but fromdifferent sizes of firms, the accounting firm scale, customer more important, auditquality is high; the accounting firm scale, effect of client importance on audit qualityis not significant. At the end of the annual data of2009-2011trend analysis, theanalysis results show that the CPA firm’s audit quality has generally improved. Theempirical results provide support for the auditor civil responsibility, given the large accounting firms audit of high quality, big CPA firms should be encouraged in Chinado strong, driven by the combined local office, to promote the healthy development ofthe audit market environment.