Research About The Relationship Between Auditor Industry Specialization And Corporate Tax Avoidance

Tax avoidance behavior of listed companies has always been the focus of the supervision department.Especially in recent years, many multinational companies suspected of tax evasion investigation, makes the tax once again become the focus of regulators to prevent. Audit as external supervision tool, is bound to has certain influence to the enterprise tax. Some scholars think that the auditor industry specialty can restrain enterprises tax avoidance,But some scholars research with expertise in the industry come to the auditor, in the case of audit independence is poor, can use their professional knowledge to help enterprises evade taxes. The influence of auditor industry specialty tax of the enterprise at present a unified point of view.At the same time, our country is at a "emerging and transition" market environment,enterprise’s tax activities are influenced by the nature of property rights and government intervention, such as transition factors. This paper mainly discusses the auditing industry expertise as the influence of external governance mechanism on corporate tax avoidance activities, and studied the differences in the effect under different ownership of enterprises environmental performance.Firstly, the auditor industry expertise and business tax and other related concepts are described; secondly, combining agency theory, risk-oriented audit theory, contract theory, the division of labor and specialization theory and other theories put forward the theoretical basis of this paper; then, this article select 2012- 2014 Shanghai and Shenzhen a-share listed companies as samples, the role of empirical auditor industry expertise of corporate tax radical behavior, and to distinguish between the effects of different ultimate controller of enterprises.The results showed that:(1) with expertise in the industry can effectively restrain auditor enterprises tax avoidance.(2) based on differences in political relation and financing constraints, relative to the state-owned enterprises, auditor line expertise of non-state enterprises tax avoidance governance efficiency is much more significant.Finally, the study has been described shortcomings point, and the late research prospects. Meanwhile according to China’s national conditions, industry expertise of our auditors specialization strategy and corporate tax avoidance governance made several specific recommendations. Auditors industry as perfect training mechanisms to strengthen auditor industry specialization development; occasion in SOE reform,strengthen supervision of state-owned enterprises tax avoidance, improve regulatoryefficiency overall corporate tax auditor industry expertise.