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Government Regulation,Audit Reputation And Audit Quality

Posted on:2018-01-30Degree:MasterType:Thesis
Country:ChinaCandidate:C J ChenFull Text:PDF
GTID:2346330515475548Subject:Accounting
Abstract/Summary:PDF Full Text Request
Market economy can not develop without standard systems and perfect intermediary services.As an intermediary organization,accounting firm provides audit services that have become important guarantees of the orderly operation of the capital market,as well as bonds and bridges linking government,businesses and the public under market conditions.Audit quality is directly related to the operative efficiency of capital market.Although the CPA industry started late,but in the Government,industry experts and practitioners together to help push,has developing fast.However,at this stage of rapid development of CPA,many potential problems have led to some internal audit failure cases occurred.In 2002,China Association of Certified Public Accountants gave the administrative regulatory rights covering the CPA industry back to the government and the CPA industry began to take the government supervision mode.Along with the unceasing advancement of domestic market economy,has been the government regulation really helpful in audit market? How the government regulations influence the auditing quality? And after government formulating a series of rules and standards by force,how those rules and standards effect autonomous operation of the market mechanism? Based on above questions,this article,from the perspective of the management system on CPA implementation of the securities and futures business license,takes audit reputation as a model of audit market mechanisms and studies inherent logic relationships between government supervision,audit reputation and audit quality.This paper theoretically analyzes the motivation of government regulation,the formation path and mechanism of audit reputation,and combing the relationship between government regulation and market mechanism with the reports of major political meetings in china.Based on the theoretical analysis,this article selects 2010-2014 all non-financial industry A-shares of listed companies as research samples and takes the audit report aggressiveness as indicators of audit quality in the empirical research.Firstly,the empirical research takes two periods before and after government publishing the new regulatory policy as a breakthrough point to validate the relationship between government regulation and audit quality.Secondly,the research regards those accounting firms that have ranking the top ten on the "comprehensive evaluation of Chinese accountant firms hundreds of table" for no less than three years as representatives of the high reputation,on behalf of verifying the relationship between the reputation of the audit and audit quality.Finally,by introducing interaction terms and grouping test method,the paper verifies the mutual relation between the government regulation and audit reputation mechanism,and their joint action on audit quality.Through the above theoretical analysis and empirical analysis,the paper gets the following conclusions:(1)Regulatory acts of the Government,from the overall,significantly contributed to the improvement of audit quality;(2)Audit reputation mechanism in China's auditing market has been established and is effective,that is to say audit reputation can significantly promote the audit quality;(3)there is an alternative relationship between government regulation and audit reputation mechanism.On the one hand,the government regulation has not significantly promoted the audit quality of the high reputation accounting firms,namely audit reputation plays interference role while the government regulation effects the audit quality;On the other hand,the promotion effect of audit reputation on audit quality is weaken after the government supervising,namely government regulation measures hinder the effective operation of the reputation mechanism in audit market.
Keywords/Search Tags:government regulation, market mechanism, audit reputation, audit quality
PDF Full Text Request
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