Study On The Quality Of External Audit Based On The Perspective Of Management Fraud

The development of the capital market determines the level of audit. China’s capital market started late, originated in the seventy or eighty’s of last century, compared with western developed countries, is still not mature enough. Review of the development of China’s capital market, today has not lasted long has made considerable progress, worthy of the people happy. With the rapid development of the capital market, also surprising is our external audit services and constantly improve the level of audit quality, more and more recognized by investors, provides a strong guarantee for the healthy development of the capital market in turn.Studying on the audit quality is always the core content of the external audit in the research field of research results, each have to continue to improve the voice. The external audit of the development process, made brilliant achievements are worthy of recognition, but we should see the auditing work in China’s development is not smooth, the audit quality once questioned, auditing lawsuits have occurred, the audit development road of the same thorns. Among them, a "chronic disease" the most severe impact of audit quality is management fraud. Management fraud is the listing Corporation executives for their own benefit and damage other investors related interests of the "moral" behavior. Management fraud not only disrupt the capital market behavior, disrupt the market order, it is caused by the arch-criminal audit market "credit crisis". It is based on this fact, this paper based on the perspective of management fraud and explore its influence on audit quality how. This paper adopts the method of combining normative research and empirical research. In normative research, audit opinions and audit fees are used as alternative indicators of audit quality, in order to confirm each other, it is currently many domestic and foreign experts and scholars on the issue of audit quality. It is assumed that compared with the non fraud Sample Firms, external auditors of Sample Firms fraud more non-standard audit opinions and charge higher audit fees. An empirical study on the relationship between process, using Logistic regression analysis, multivariate linear regression analysis to test management fraud and audit opinions and audit fees. The empirical results show that both the audit opinions or audit fees are under 10% of the significance levels were positively correlated with the management fraud. This is consistent with research hypotheses in this paper. At the end of the analysis results of fraud samples were variable difference T test and non fraud samples showed that the external auditor can not only effectively identify the listing Corporation executives of the "moral" behavior, and through to the non-standard audit opinions and charge higher audit fees disclosure management fraud.The article thinks, in the management fraud rampant today, external auditors can still play the role of economic. Although the domestic and foreign media reported that a large number of relevant management fraud and audit cases, who makes the stock market suffered a "winter", however, rational investors can always calm, objectively caused by management fraud lawsuit, not because of the media hype and the external audit quality veto, external auditors for management fraud zero tolerance is to give investors confidence. Finally, the whole audit quality in our country is still worthy of trust investors, however, auditing work in China still has a long way to go, the high quality audit will be the future goals of the audit industry. Finally, to further enhance the quality of our audit recommendations. I believe only the good level of audit quality, and resolutely put an end to all kinds of management fraud, can play the role of firewall audit.