Research On The Influence Of CPA Human Capital Characteristics On Audit Quality

Audit plays a key role in the steady development of economic market,it not only provides the supervision and check of the truthfulness of financial reports of the listed entity,but also can provide the basis for the decision of stakeholders and maintain the good market economic order.Therefore,audit quality is the life of audit work.Act as a capital-intensive industry,whether the supervision function can give full play to the audit work is closely related to the CPA.Sociology,and psychology research shows that people with different gender,age,educational background,have different attitude towards risk,professional skills,values,ways of thinking,judgment and decision ability and moral values,and also will show different characteristics of the occupation,when it comes to the audit industry,it is mainly the professional competence ability difference and audit independence,which affect the quality of audit service.Therefore,the differences between individuals of CPA have substantial influence on audit quality.The related research has been gradually transferred from the firm level to the individual level,but domestic research has lagged behind.In view of the need of theory and practice,the paper put hand from the individual level to study the relationship between human capital characteristics of the CPA and audit quality.The theoretical research was based on review of the previous research and analyzed the value of CPA human capital,finding that CPA human capital can promote audit quality,but how it worked depended on the characteristics of human capital.So according to the characteristics of human capital in the specific analysis,they were divided into basic characteristics and occupation characteristics,and the mechanism was analyzed by analyzing CPA human capital.The empirical research used the modified Jones model which can help get the absolute value section of accrued profit as alternative indicator of audit quality and construct multiple regression the analysis model with CPA gender,years of practice,education,position and the number of other related professional certificate as alternative indicators of human capital characteristics and made empirical analysis and further test.The research results showed that among the six factors,CPA's position,years of practice and education background could significantly influence the audit quality;otherwise,the characteristics of sex,major and the number of other certificates couldn't influence audit quality significantly.Based on the theoretical and empirical research results,the paper suggested that the firm should pay attention to the obtain,use and maintenance of the CPA human capital based on characteristics to allocate the human capital reasonably,in order to allocate CPA human capital and increase the investment of human capital to maximize its utility: the CPA should focus on the accumulation ofwork experience and improve their education background,and the accounting firm should set up a platform for the exchange of experience and skills between the CPAs so as to help share the professional knowledge and experience,otherwise,reasonable arrangement of the project team,incentive mechanism and better supervision system are also important.Self-discipline organizations such as the Ministry of finance and the AICPA industry should strengthen the supervision and support of accounting firms,and provincial institute of certified public accountant should also learn from the successful experience of the CICPA to strengthen the training system of the CPA so as to improve the audit quality of accounting firms,so that we can promote the healthy and steady development of China audit industry.