Research On The Relationship Between Audit Quality And Accounting Information Quality

The public are the stakeholders of listing corporations and the information users of listing corporations.They usually use the financial information provided by listing corporations to evaluate the operatingperformance and financial status. They also can evaluate the managements’ operating efficiency and makereasonable decisions. For the state-owned enterprises, government departments and state-owned assetssupervision and administration institution are also important users of accounting information, Byanalysising the financial indicators and operating indicators, they can evaluate the state-owned enterprises’efficiency of resource utilization, they can also evaluate the operation and management status. However,the state-owned and non-state-owned enterprises have the problems of accounting information distortion.The problems are harmful to the accounting information users to make decisions. How to improve thequality of accounting information becomes a social concern, and it is a key research subject in thetheoretical circle. By collecting relevant literature at home and abroad, this paper finds many scholars studythe quality of accounting information mainly from these angles, such as corporate governance, theconstraints of accounting standards, characteristics of accounting information, the paper also collect theresearches on the quality of external audit and finds that many scholars research on audit quality from theseangles, such as the firm size, audit fees, the international "big four", etc. but less scholars combine the twoaspects. Even if some scholars combine the two aspects, they basically adopt normative research method;this paper starts working at the effects of audit quality on the quality of accounting information, adoptingempirical research method, to explore whether the external audit can "filter" the false accountinginformation of listing corporation.The paper leads to the object of the relationship between audit quality and accounting informationquality from the phenomenon of accounting fraud at home and abroad in recent years, and comb theresearch literature on audit quality, accounting information quality, this part lays a theoretical foundationfor the specific measures of audit quality and the quality of accounting information. The theoretical basisincludes principal-agent theory, asymmetric information theory, reputation theory, signal transmissiontheory, effective capital market theory. Based on the above theoretical analysis, this paper puts forward assumption1: the audit quality and the accounting information quality have a positive correlation, and theempirical test results are consistent with hypothesis1. In order to study the further relationship between thetwo, the paper introduces the property right of enterprises. Then the sample data is divided into twocategories. They are state owned enterprises and non state owned enterprises, the study found that: for thefirst type of sample data, the influence of audit quality on the quality of accounting information is notsignificant; for the second sample data, the influence of audit quality on the accounting information qualityis significant. The main reason for this phenomenon is the invisible protective effect from the government.Furthermore, the model introduces a new variable-cash flow from operating activities generated aproportion of total assets to test the robustness of the model. Finally, combined with research conclusion,the paper puts forward corresponding measures and methods. From the whole market perspective,standardize the audit market and improve the quality of audit. From the perspective of government, clearaudit objectives and specific standards of state-owned enterprises, coordinate the relationship betweengovernment inspection, external audit and enterprises to provide financial reports and avoid multipleinspections, repeated inspection. From their own perspective of enterprises, perfect corporate governancestructure, independent directors give full play to the supervisory role, group can assign chief financialofficer to each branch, weakening the pressure of financial officers from management. From theperspective of accounting personnel, they should not only strengthen the accounting personnel skills andimprove their professional quality, but also strengthen professional ethics education and improve theirsense of responsibility.The phenomenon of accounting fraud is still often emergence in China, along with the development ofcapital market, the improvement of audit quality, the continuous improvement of accounting standards,improvement of national quality and the financial accounting system, the quality of accountinginformation provided by listing corporations will be improved.