Social Capital、 Political Relations And Audit Quality

Along with our country market economy system gradually established, CPA’audit plays animportant role in the implementation of the national macro policy, maintenancing the capitalmarket orderly operation and protecting the interests of the investors, and the audit qualitydirectly affects its role in the audit.However, a series of accounting fraud are exposured, auditquality has many problems, seriously damaging to the interests of users in the financialstatements.Recently, the International Auditing and Assurance Standards Board (IAASB)published titled “audit quality framework: create environmental key elements of the auditquality”, describing the direct or indirect factors in affecting audit quality,from supply chainparties of the financial statements to national level.From audit theory, We know that most ofthe foreign scholars’ empirical studies about the influence factors of audit quality mainlyconcentrate in the supply chain of the financial statements, such as the enterprise scale,certified public accountants’industry expertise, the researches focuse on the formal systemand economic system influencing on audit quality, few scholars focuse on audit quality fromthe big environment such as national level,the lack of trust, relationship network and so oninformal system.Based on the background, this article attempts to validate the social capital,political relations influencing on audit quality, makes every effort to expand the research ofaudit quality.This article take empirical data of the listed companies in China from2009to2012as asample to research how social trust、political relations influencing on audit quality.Researchfindings:(1)It is significantly positive correlation between social trust and audit quality;(2) Itis significantly negative correlation between political relations and audit quality;(3)Comparedwith area where owns high degree of social capital, this article find by further research thataudit quality is more strong to political relations in the area of low degree of social capital.