A Study On The Impact Of Geographical Location On Auditing Quality Of Accounting Firms

With the establishment of the market economic system and the development of the securities market,China's listed companies on the accounting firm's audit service needs more and more,the CPA audit in the implementation of national macroeconomic policies to maintain the orderly operation of capital markets and protect investors,Public interest and other aspects of the supervision played an important role.Judging from the current situation of audit quality of listed companies in China,although the audit quality has been greatly improved,but the accounting firm to participate in the financial fraud of listed companies to provide false reports of illegal acts have occurred,the CPA audited social credibility by the public Of the question,which to some extent hindered the development of China's capital market,accounting firm independent audit had a greater negative impact.The factors influencing the audit quality of accounting firms have attracted the attention of scholars at home and abroad.Domestic and foreign scholars mainly from the audit of the main body,the audit object of the accounting firm audit quality.There is less literature on the audit quality of the accounting firms from the external environment,and the study of the external environment is limited to the legal and regulatory system,and it is rarely related to the geographical factors.But the geographical position between the economic subjects in the interpretation of the accounting firm's decision-making behavior and the relationship between the contract play an important role.In view of this,this paper intends to test the relationship between the geographical location and the audit quality of the accounting firm from the geographical point of view,with a view to improving the audit quality of the accounting firm in China and promote the healthy development of China's audit market.This paper uses the method of normative research and empirical research to further explore and analyze the relationship between the geographical location and the audit quality of the accounting firm.The main research contents are as follows: Firstly,it discusses the background and significance of the research on the audit quality of the geographic location and the accounting firm,and analyzes the main influencing factors of the auditing quality of the accounting firm based on the review and combing of the related literature at home and abroad.Secondly,it defines the connotation,characteristics and measurement standard of the concept of geographical location,classification and audit quality,and uses the theories of transaction cost theory,principal-agent theory and rent-seeking theory to explore the motivation of geographicallocation to affect the audit quality of accounting firms.Thirdly,by analyzing the problems and reasons of the audit of accounting firms in China,we will provide realistic support for the empirical research below.Finally,combining with the above theoretical basis,taking the A-share listed companies in China from 2013 to 2015 as the research sample,using the multiple regression and Probit regression method,Select the distance between the accounting firm and the listed company,the model of the economic development degree of the city where the accounting firm is located,the model of the relationship between the geography position and the audit quality of the accounting firm,and the empirical test between the two Relevance impact.The empirical results show that the closer the CPAs are to the listed companies,the lower the degree of earnings management of the audited units,the higher the probability that the accounting firms issue "clean" audit opinions,and the higher the audit quality of the accounting firms.There is no significant correlation between the degree of urban economic development and the quality of auditing.On the basis of the conclusion of the research,based on the information asymmetry,it is suggested that the consideration of the geographical position should be strengthened.At the same time,it should also improve the audit committee mechanism,the accounting firm internal governance mechanism and regulatory mechanism.So as to improve the quality of audit of China's accounting firms.