Integrated Audit And Perceived Auditor Quality

In 2012, our country decided to promote the implementation of enterprise internal control audit in listed companies in batches, but there is no mandatory requirement to integrate audit.that is to say,the Internal Control Audit and financial statements audit of audited entities shall be borne by the same firm. Listed companies have the right to choose a different audit model(integrated audit and non-integrated audit), Whether different audit models lead to different audit quality is yet to be studied.After the AS NO. 5 issued by the PCAOB, Foreign studies of integration of audit mainly concentrated in the AS NO. 5 and AS NO. 2 contrast,and the impact of integrated audit on audit fees and audit quality after the implementation of AS NO.5(Zhang & Wu, 2009; Abraham D.Akresh, 2010; Wang & Zhou, 2012). Domestic studies on the integration audit was primarily and mainly focused on discussing the internal relevance of Internal Control Audit and audit of financial statements,as well as the feasibility and necessity of integrated audit(Zhang Longping, Li Xiaohong, Xie Xiaoyan, 2009; Tang Jianhua, 2011). Along with the implementation of the integration of audit in the listed company,came empirical research related on integration of audit and audit quality(Ni Xiaoya, Zhang Longping, 2015; Hu Benyuan, Xu Chengcheng, 2015). But this kind of empirical research related on integration of audit and audit quality mainly based on the financial reporting quality characteristics and the number is relatively small, therefore,It does not fully reflect the audit quality changes brought by the implementation of integrated audit.This article, which based on the efficient market theory, signaling theory, system collaborative theory and spillover effects,takes the company listed on the main board of Shanghai and Shenzhen A shares as the research object, the Surplus reaction coefficient as substitution variables of audit quality,at the same time,it takes the factor of the size of the firm into account.Since uneven distribution of the non-integrated and integrated audit sample,furthermore, in order to avoid the impact of Industry corresponds to earnings response coefficients, a 1:1 matched study is carried out between the non-integrated and integrated audit sample by industry and scale in the four sample groups and non-four sample groups respectively.Refer to Teoh and Wong(1993) constructed empirical model.it test empirically the influence on audit quality after the Enterprises implement integrated audit. The study found that in sample group of large-scale firms, Investors feel better about the audit quality under integrated audit,while Investors feel no difference about audit quality in different modes of audit in sample group of small-scale firms. In the case of relatively high independence and expertise,this shows that investors believe that the audit quality provided by integration of audits must be better, however, Investors believe that the integration of audit and non-integrated audit have no difference when an auditor has been questioned in independence and professionalism.