The Influence Of Damaged Professional Reputation To Certified Public Accountants

The meaning of existence of the audit market is one of the ultimate goals of the CPAassurance engagements. Audit professional reputation is a way to execute specialagreement; it encourages auditors to perform the audit contract behavior and their resultson the audit market. At the same time, audit reputation is also a standard to measure auditquality high or low. If the formation of audit reputation is damaged, it can bring sufficienteconomic consequences to the accounting firm.The research is based on the background of financial fraud cases on capital markets.Firstly, we review relevant research results and damaged audit reputation at home andabroad, in combination with the previous studies and the actual situation of certified publicaccountants in our country, we analysis the theoretical basis of the audit reputation.Secondly, we study audit reputation mechanism of our country including the situation ofauditing profession in our country and the failure reason of the existence of reputation.Then we analysis the influence of audit market reputation, which including audit fees,audit opinion, audit quality and customer retention. Thirdly, we make the empiricalanalysis of audit reputation for certified public accountants, the specific process includesputting forward the research hypothesis, building a model, making the empirical analysisand inspecting results. We select recent punished certified public accountants by thesecurities as the research object, and choose intact firm reputation as the control inaccordance with the appropriate principle. Through statistical software SPSS21.0, weconduct descriptive statistical analysis, correlation analysis, and model regression analysis.We make a further inspection of the audit reputation effects on the economic consequencesof the public accounting firm.Finally, on the basis of this research we put forward suggestions to build and maintainaudit professional reputation, effective punishment mechanism failure. In the process of theresearches also have shortcomings. For example, market knows defective audit qualityinformation of punishment firm heads of the securities and futures commission official announcement. Audit professional reputation is important to receive advantage andsustainable development. It has great and far-reaching significance to improve theeffectiveness of the capital market. To establish and maintain audit reputation of certifiedpublic accountants is of great urgency.