| In1992, to coincide with the Reform and opening-up policy and to meet the needs of the development of China’s capital market, China began to approve foreign accounting firms to cooperate with the Chinese accounting firms. At that time the international "big six" that Arthur Andersen, Ernst&Young, KPMG, Deloitte, Price Waterhouse, Coopers&Lybrand became the first approved entrants, With the development of market, the "big six" has been integrated into the current "big four", Namely, KPMG Hua Zhen, Ernst&Young Hua Ming, Deloitte Hua Yong, PricewaterhouseCoopers Zhong Tian four Sino-foreign cooperative CPA. In the past20years, the "big four" has been developing rapidly, reputation in the industry of Certified Public Accountants, But with China’s socialist market economic system continues to improve, the degree of opening and deepening the continuous development of China’s CPA industry, The firm’s organization of foreign cooperative form is no longer meets the organization of Chinese accounting firms, nor customary international practices, Thus, with the20-year period of "big four" promised is deadline, May2,2012, Ministry of Finance, Business Administration, Department of Commerce, foreign exchange bureau, the Commission jointly issued the "Sino-foreign cooperative localization CPA restructuring plan"(finance and accounting [2012] No.8), Requirements "big four" by establishing commitments to achieve localization in the form of the organization in line with Chinese laws and regulations that the special general partnership, and achieve localization staff, etc. That the event of transformed to the localization to the "Big Four" bring what impact to theirs audit quality and the type of audit opinion issued?This area has important theoretical and practical significance, First of all, through evidence research, analysis before and after conversion "Big Four" audit quality and audit opinions issued types of changes, testing the effectiveness of localized transfer policy to "big four", providing support for future conversion firm research by the theory and data,Secondly, for the ministry of finance and relevant government departments to carry out firm provides empirical evidence to support the conversion of the accounting firm, Government on the future development of the industry to improve the development of the accounting firm policy of providing reference and further promote the development of China’s CPA Industry. Therefore, a preliminary attempt in this aspect has done and hope for the future of people more in-depth study of the "big four" localized transfer policy to provide a reference. Contents of this paper include the following six part:Part Ⅰ:Introduction. Includes research background、purpose and significance, research ideas and frameworks, research methods and the innovations of research four aspects.Part Ⅱ:Literature Review. This section from on audit quality and the type of audit opinion concerning two aspects of literature to sort out, The literature on audit quality which in turn from the firm size, firm mergers and firm organizational forms to summarize comments, Above will affect the audit opinion types of documents in accordance with the firm’s perspective and company Angle respectively to sort out, summary and evaluation.Part Ⅲ:The theory analysis of localization restructuring to "Big Four" audit quality and audit opinion type. Firstly, the part of the meaning of audit quality is defined, Then from the reputation of the theory and the "deep pocket" theory these two theoretical foundation, Analysis the mechanism of the localization transfer policy, Further analysis the impact of the "big four" audit quality and the type of audit opinion, Finally, analysis the transfer policy of localization of its impact on the "big four" audit quality and the type of audit opinion depth, based primarily on changes in the organization and the localization of staff provision of two aspects to start.Part Ⅳ:study design. Firstly, based on the theory analysis of the previous chapter, Proposed assumption that after localization restructuring, the "big four" audit quality will be significantly improved and the probability of non-standard audit opinions issued by the type will rise, Followed by the selected research variables, including the be explained variables and the explanatory variables, Explanatory variable is the localization conversion events, Discretionary Accruals absolute value (absDA) as an alternative to audit quality variables and the type of audit opinion (OP) are two Be explained variables, Then select the model to create and define the control variables selected, eventually establishment of a conversion event with audit quality and audit opinion type the two models, Finally, explain the source data and select the sample, The study sample in this article are from China’s A shares in Shanghai and Shenzhen listed companies audit firm is "big four", financial data from the CSMAR database, the firm rankings, income and other data from the AICPA website, then pick out the data of "big four".Part V:The empirical results and analysis. This part of the two models were carried out in the previous chapter presented descriptive statistical analysis, correlation analysis and regression analysis. Descriptive statistical analysis of the two models about maximum, minimum, mean, median, variance were made, also compared before and after the localization restructuring of their changes from the intuitive, lay the foundation for later in the regression analysis. Correlation analysis were also carried out on two models by spearman test and person test, by two test to analyze the correlation between variables, the results are more reliable than a test mode. The regression analysis on the basis of audit quality model on the full sample regression, again DA is greater than zero and less than zero will be divided into two groups based on the full sample, regression, respectively, In addition to the audit opinion model do the Logistic regression, and get the regression results. On the basis of the preliminary analysis, and re-examine the design of a control group use DID model in-depth analysis, and further validate the results of the preliminary analysis.Part VI:Conclusion. This section includes three parts of research findings, relevant suggestions as well as insufficient and future research directions of this research. Mainly for the results of this study puts forward some proposals to the future development of certified public accountants industry, and aiming at the deficiency of this study, the paper points out the future research direction. This article research results include:1. Localization transformation can significantly reduce the degree of earnings management, improve the audit quality of the "big four".2. Localization transformed so that the "big four" can enhance their independence, the probability of non-standard type of audit opinion issued by the rise. It can be seen from the above two aspects of the localization policy "big four" had a positive impact.For lack of this article, mainly because of "Big four" local time is short, the conversion of the time limited, this article just a preliminary study to the "big four" localization conversion policy, model is not perfect, and not comprehensive measure, etc.So far, relatively few of the "big four" impact studies on the localization policy, Mostly be analyzed from the theoretical level, from the perspective of empirical investigation localization policy to the "big four" audit quality and audit opinion type, almost no, The probably contribution of this paper is:1. The object of study:the research object in the existing literature on firm restructuring policy research mostly focused on the study of our local, and the research object of this paper is always ahead of the local development of the international "big four" is different from previous literature, As the "big four" are part of the CPA profession, and has a pivotal position in the industry, therefore, this article research enrich our country certified public accountants industry.2. The research perspective:for Chinese-foreign cooperative localization policy research, the conversion of the existing literature has focused on whether the policy will reduce investors trust, such as the change of organization and staff localization, This article not only from the "big four" the perspective of organization and staff localization, further through theoretical derivation to check the policy of "big four" audit quality and audit opinion type. |
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