Study On The Influence Of Corporate Social Responsibility On Audit Quality

With the development of economy and the progress of the society, the gradual separation of ownership and management, the mandate relationship emerged. In order to solve the problem of asymmetric information between principal and agent, our country introduces the audit supervision of the third party. However, over the years, the domestic and foreign financial fraud scandals still keep emerging. People began to realize the necessity of improving the audit quality, so the authenticity and accuracy of the disclosure of information can be strengthened. The emergence of financial scandals is also a manifestation of lack of corporate social responsibility. We believe that: the corporate whois willing to undertake the corporate social responsibility are more willing to accept the high quality audit service, so corporate can send information of good quality to the stakeholders of the firm. Therefore, the social responsibility of the enterprise is likely to have a certain influence on the financial report audit quality through stakeholder. This thesis conducts the research on audit quality from the perspective of corporate social responsibility using empirical method.Firstly, this thesis reviews and comments the domestic and foreign research findings about the audit quality and corporate social responsibility. The review of audit quality literature mainly include two aspects: definition of audit quality and the influencing factors of audit quality; and the review of the literature on social responsibility are mainly described from two aspects of theory and empirical text. This thesis proposes a view that audit quality can be studied from the perspective of corporate social responsibility.Secondly, the social responsibility of the enterprise can enhance the credibility of audit report, so it is closely related with the quality of audit. This paper uses the contract theory, signal transmission theory, stakeholder theory and synergy effect to analyze the influence of corporate social responsibility on the quality of audit, and clarify that corporate social responsibility has influence on audit quality from a normative perspective. The theoretical analysis shows: the enterprises transfer a positive signal to the outsideworldthrough fulfilling their social responsibilities and disclosing relevant information, but the enterpriseand its stakeholders and potential stakeholder has asymmetry in formation, and then external audit can ease the level of informationasymmetry as a effective way to increase the authenticity,completeness and accuracy of business information the enterprises disclosed. Therefore,the enterprise willing to bear the socialresponsibility hasmorewilltoaccept highqualityaudit, inorder to transfer quality in formation to stakeholder, so corporate social responsibility have a positive effect on audit quality.Thirdly, this paper test and verify the influence of corporate social responsibility on the quality of audit using sample data and empirical method. The data comes from A shares of listing Corporation in 2013. And the final result shows that corporate social responsibility is positively related to audit quality by descriptive analysis, correlation analysis and regression method. This indicates that corporate which think highly of social responsibility has a high demand on high audit quality, and corporate social responsibility has a certain signal effect. So the first hypothesis is verified. Then the sample is classified into two type according to whetherdisclose the corporate social responsibility report, and the second hypothesis is verified by empirical method: for the corporate which disclose corporate social responsibility report, the correlation between corporate social responsibility and audit quality is more obvious. This study concluded that: the better implementation of corporate social responsibility of enterprises, the relatively high auditing quality enterprises have. This shows that corporate social responsibility influence the audit quality in a certain extent. The enterprises shall think highly of corporate social responsibility and disclose social responsibility information positively.Finally, based on the above theoretical analysis and empirical testing and combined with the conclusion of the study, the paper put forward the following policy suggestions on improving audit quality: strengthen the performance and information disclosure supervision of corporate social responsibility, and also some suggestions from the macroscopic angle. Based on analyzing the limitations, this paper presents further research directions.