Research On Auditor Independence In The Customer Follow Type Of Auditor Changes

Every year in our country the proportion of the listed companies that change accounting firms accounted for all listed companies are far higher than the average level in abroad. The phenomenon has been appealing the attention of the academia, regulators and the public. Different accounting firms change form conveys different information. In this paper, based on whether the certified public accountants take audit client when he leaves the accounting firms as standard, according to the financial report of listed companies whether there is the same accounting firm in consecutive years with different certified public accountants, divided auditor Changes into “customer follow” change and common form change. Research the impact of “follow” type of auditor-client relationships on the audit independence.On the basis of reviewing the existing research results, using the theory of customer relationship management, the relational contract theory and asset specificity theory analysis audit independence under the“customer follow”firms change. The empirical part takes 2004 to 2013 in A-shares of the listing Corporation of Shanghai and Shenzhen Stock Exchange that change accounting firms as the research object and chooses level of earnings management as the alternative indicators of auditor independence and uses descriptive statistic and multiple regression models to empirical test. The results of this paper showed that if the listed company taken place the“customer follow”change, the“follow”type of auditor-client relationships will be harmful to auditor independence, the audit independence was reduced. Compared with non-state-owned listed companies, once the state-owned listed company taken place the “customer follow”firms change will have a more pronounced negative impact on audit independence. And in this article from the aspects of firm, regulators and listed companies to put forward the proposal, to guarantee the Audit Independence.