| In March 1979, the State Administration for Industry and Commerce proposed restoration and develop individual economy, from then on, in the tide of reform and opening-up policy, private enterprises have developed rapidly, the private economy has experienced from small to large, from weak to strong, now is become the important force of economic and social development as the economy of public ownership. However, in the process of planned economy to market economy, the market system is not perfect, there are many obstacles to the development of private enterprises, however, private enterprises is still developing rapidly in this environment, in addition to government policy support, private enterprises can grasp the fleeting market opportunities and other reasons, political connections also played an important role in the development of private enterprises. Now at home and abroad on political association study is less, especially in China, research in many areas related to political association is still shallow and at the initial stage, so it have important significance to study political connections.Private enterprise’s political connection is not a natural, it spent time and effort even at the expense of the application in enterprise production and the consumption of resources to establish political connection, private enterprises assume greater risk, seemingly putting the cart before the horse, why they try to do it? Existing research shows that, the political connection of private enterprises will bring the convenience of taxation and financing, especially in the weak legal environment and government intervention area, establish political connection is advantageous for the enterprise to break barriers, and realize diversified development, even enhance accounting conservatism and transparency of information, enhance corporate value and operating performance, therefore enterprise have the motivation to seek political connection, but it can also shift the social burden from the government, emptied enterprise assets, have more serious negative influence on the enterprise value. Enterprises that have political connection may disregard the enterprise long-term development and have short-term behavior, is not conducive to enterprise development and produce production, even whitewash statements in order to search political connections and government support.CPA audit have the verification function for the enterprise’s financial position, operating results and cash flow, help investors make the rational investment decision and protect the interests of other stakeholders in the infringement, prove that CPA has been in accordance with the provisions of relevant laws and regulations and the CPA occupation moral. So will the political connection of private enterprises have any influence on audit, will it affect the enterprise choose accounting firms and obtain the audit opinion? Is appointed "Big accounting firm" to achieve good signal transmission effect, or appointed "small accounting firm" to cover its use political connections to achieve the purpose of rent seeking? Can they use their political connections to get a cleaner audit opinion? What will the business go without politics? These are worth studying.In this paper, we use A-share private listed corporation from 2011 to 2013 as the research sample, using the method combining criterion research and demonstration research, in the premise of the existing literature, analysis and review of the related to political association of government intervention theory, rent-seeking theory and stakeholder theory, audit opinions and the selection of accounting firms related to the insurance hypothesis, signaling hypothesis and agency theory, and then put forward hypothesis and empirical analysis. The study found that in certain conditions, political association of private listed companies tend to hire local "small accounting firm", and higher level political association of private listed companies are more likely to appoint local "small accounting firm", private listed companies which have no political association of are more inclined to the appointment of "big accounting firm"; Private listed companies which have political connection are easy to obtain clean audit opinions, higher level political association of private listed companies are more likely to get cleaner audit opinion. |
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