| Since the reform and opening, the securities market of china has been rapidly developed.It leads the capital market to reach the goal of optimize the allocation of resources, makes an important contribution to the economic development of our country. The healthy development of securities market depends on the quality of financial information, only the quality of financial information can guarantee the benefits of the investors. However, in recent years, financial restatement phenomenon occurs frequently in China securities market. According to statistics, 2011-2013 the financial restatement ratio of listed companies in china is about 17.81%, much higher than the ratio of western capital market. The phenomenon of frequent financial restatement reflects that the financial reporting information quality of listed companies in our country is still not high at present stage. As an independent third-party certified public accountant who failed to timely discovers and discloses errors existing in the financial statements, should bear the unshirkable responsibility to this. Frequent financial restatement have adverse economic consequences for the securities market and also harm the interests of the broad masses of investors, how to effectively prevent the listed company’s financial restatement phenomenon has become the focus of the current regulator, also become one of the key research topic in the academia.This paper from the perspective of external audit of listed company, mainly includes the five following parts to study the correlation public accountants and financial restatement:the first part is introduction, specifically, the research background and significance of this study is introduced, the references regarding accounting firms and financial restatement both at home and abroad is summarized as well as the research method is clarified; The second part is relevant concepts and theoretical basis concerning accounting firms and financial restatement, the definition and type of financial restatement is generalized, and the relationship between accounting firm characteristics and financial restatement is illustrated on the basis of three theories:The principal-agent theory, reputation theory and organizational legitimacy theory; The third part is the theory analysis, the article gives the hypothesis based on our current situation of financial restatement and the analysis of the correlation of accounting firms and financial restatement; The fourth part is empirical research analysis, the listed companies in A-share markets of Shenzhen and Shanghai Exchange from 2011 to 2013 were selected as study samples, the method of descriptive statistics, correlation analysis, Logistic regression analysis etc. were used to analyze the correlation between financial restatement and accounting firm is from the accounting firm scale, industry expertise and the audit fee; Through theoretical analysis and empirical study, this paper draws the following conclusions; the accounting firm scale has a significant negative correlation with financial restatement; accounting firm industry expertise also has a significant negative correlation with financial restatement; whereas the relationship between accounting firm’s audit fees and financial restatement is not significant. The fifth part is research conclusions and prospects, the related policies are suggested and the research prospects were discussed according to the conjoint analysis results.Innovation of this paper lies in:From the aspect of external audit in financial restatement company, a comprehensive analysis of the different aspects of accounting firms and its correlation with financial restatement is given, extending the research perspective of financial restatement; Meanwhile, combining the predecessor research results and research perspective of this article, the characteristics of accounting firms are rephrased and summarized in three aspects: accounting firm scale, industry expertise and the audit fee. On the basis of the research conclusions, proposals are provided accordingly to upgrade the audit quality of audit market, avoid information disclosure of our security market, and reduce the occurrence of financial restatement. |
PDF Full Text Request