The Influence Of Financial Restatement On Audit Office

Financial statements of listed companies is the basis of investment decision of investors,creditors and other stakeholders.It is the only way to get information of listed companies' operating results,cash flow,assets status,etc.It is the main carrier of information.Certified public accountants express an opinion to test whether the financial statements in all major aspects is in according to the using of financial reports,its responsibility for financial report is to provide reasonable assurance.Certified public accountants work as auditors of financial information.It can provide professional service and maintain a good reputation.With the rapid development of accounting standard,under the legal system of our country,how can audit market share change for the restatement firm?how can audit fees change for the restatement firm?Does the bad news of restatement have a bad economic influence on the former audit firm?Does it have an influence on reputation of audit firm?All the questions need to be resolved.Based on this,we investigate on the audit fees and audit market share.In this paper,we use a combination of normative analysis and empirical analysis to study.First we analysis the factors of audit fees and audit market share.Second,in terms of the result of financial restatement,we study the influence on audit firm of financial restatement.we divide the influence into two part including the change of audit fees and the change of audit market share.Then we study the history of financial restatement in our country and the reputation theory to analysis the influence on audit fees and audit market share,we have predictions.Last,According to China's securities market on empirical data from 2009 to 2014,we do empirically researching hypothesis,and put forward relevant policy suggestions according to the results of the study.Through the analysis of financial statements of listed companies,we analysis the influence of financial restatement on market share and audit fees,draws the following conclusion:Financial restatement has a bad impact on the former auditor,on the one hand,the issue of financial restatement means the work of former auditor is not good,it may harm the reputation of the former auditor.The market share of the former audit form may decrease and then the total audit fees may decrease.