The Empirical Study On Industrial Policy Change, Auditor Specialization And Earnings Management

With the rapid development of science and technology and political economy, competition, external risk has risen sharply, the domestic and foreign financial fraud exposure, thus some accounting firm had administrative punishment.At this point, the role of the modern risk-oriented audit more highlights.The modern risk-oriented audit requires the auditor to assess risk comprehensively, improve the quality of financial information.Although the risk guidance auditing in response to external risks, prevent enterprise material misstatement is valuable, but it produces the value of the changes with audit quality.The higher the quality is a problem with the auditor is not willing to accept the accounting treatment, are more likely to find and report the company misstatement and irregularities.The auditor industry specialty as an important aspect of the audit quality, for the risk-oriented audit implementation has important influence.Under given conditions, industry expertise to improve the ability of auditors assess, identify client risk level, help to find the material misstatement of the enterprise.About the auditor with expertise in industry in the face of external risk, whether can effectively cope with risks, improve the quality of financial information, theory and practice is not consistent conclusions.This article is to study the risk-oriented audit mode, auditors with expertise in the industry in the face of external risk, whether can effectively cope with risks, improve the quality of financial information.Industrial policy change just provide us with a study of external risk change environment.When industrial policy changes, especially when the supporting policy to not supporting policy, the company increased risk of industry, because of self-interest and asymmetric information, can expand the management of earnings management motivation.According to the request of risk-oriented audit, the auditor will focus on these high risk industry enterprises, increase the risk assessment of the implementation process, to the enterprise surplus management opportunism behavior may have inhibition effect, so as to improve the quality of financial information.Based on "The eleventh five-year plan" to "The twelfth five-year plan " changes industrial policy as the research background, in 2010, and 2011 Shanghai and Shenzhen two city a-share non-financial listed companies as samples, the samples can be divided into groups and industry policy unchanged, industry policy change return respectively, study whether changes in industrial policy, industry risk increases, auditors with expertise in the industry to the earnings management behavior of enterprise will be inhibition.The research results show that when the enterprise industry industry policy shifted from supportive to the support, the industry, with an increased risk of the risk-oriented audit mode, the auditor can inhibit the company forward with expertise in industry the maneuver ability of positive accrual earnings management, negative accrual earnings management and.real earnings management.To explain the concept of risk-oriented audit and the auditor industry specialty help auditors to identify external risks, improve the quality of financial information, for our country to implement risk-oriented auditing standards and to foster firms provide empirical reference for industry expertise.