Effects Of Audit Market Supervision Perspective On Audit Quality Audit Risk

by the increasingly high expectations, therefore, faced by auditors audit risk is also gr With the increasingly competitive business in the rapid development of the capital markets and the market economy, the growing dependence of public accounting firms that audit reports issued owing. June4,2007, the1428meeting of the Judicial Committee of the Supreme People’s Court by the Supreme People’s Court on cases involving accounting firms in the audit business activities tort compensation case provides that "the provisions to relax the interests of listed companies sued the accounting firm strict restrictions in the law no longer requires the prosecution must be obtained before the commencement of the Securities and Futures Commission, the Ministry of Finance or the judiciary punishment or judgment, which in a certain extent, improve the supervision of the investors of the firm may and to enhance the overall audit risk of the firm. Therefore, audit risk as the strength of the market supervision changes, then, as a CPA audit subject, on the one hand by the audit risk, the same time, as an independent economic entity, they, there is a certain economic dependence, it also bound by the constraints of client pressure. Therefore, the accounting firm whether the trade-off between audit risk and client pressure with the promulgation of the regulations change? Audit whether there has been a substantial change in quality after the promulgation of the Ordinance becomes certain significance.Based on the2007creation of the document, audit market regulation as the research background, the audit risk and client pressure balance obviously office size and audit fees as a breakthrough point, contrast research due to the changes of audit market regulation before and after2007, due to the change of the audit risk, and through the office size and audit fees to affect audit quality. Inspection whether the strengthening of audit market regulation can play an effective role, in considering the factors that affect audit risk, through the office size and audit fees will produce what kind of impact the quality of audit. The research results show that the audit market regulation, to a certain extent, increased the firm’s audit risk, at the same time, due to the strengthening of market supervision, audit risk impact on firm size is abate,2007years ago, only for large firms high audit risk company providing high quality audit services, due to the audit market regulation, audit risk increases, after2007, large firms in all firm offers high quality audit services, thus, large firms’ audit quality raised, audit risk impact on firm size. And since2007years ago, audit market supervision is weak, so, higher audit fees may be accompanied by the phenomenon of audit opinion to buy, but, with the improvement of audit risk, market supervision is more and more strong, higher audit fees also gradually become a high-risk warning signs, a growing number of firms will real audit opinion is given according to actual condition, rather than blindly to customer side pressure, obviously improve the audit quality.