Auditor's Low Audit Quality Contagion Effect Study

After the Enron incident,the audit industry is facing a serious "crisis of integrity",regulators,the public and market participants,although the extensive criticism of the audit work,but still recognized the audit work in the capital market play a key role,and called for the audit Industry to carry out fundamental reforms.Obviously,the accounting firm’s audit work in the capital market plays an important role,but the current accounting firm audit service quality is far from meeting the needs of society.Auditing quality is an important index to measure the effectiveness of audit work.Due to the difficult observation of audit quality,the study of audit quality has been a hot topic in the field of theory and practice.What is the reason why the bankruptcy of Anderson firm makes us reflect,causing the accounting firm to cause low audit quality?The Francis study found that the low audit quality of the accounting firm would be transmitted between the branches,which found that the quality of the audit would have an infectious effect and a new idea for the theoretical study of low audit quality.In this paper,the research perspective of the low audit quality infection effect theory is changed from the accounting firm to the auditor with the right to sign the audit report,and the auditor of the A-share listed company from 2009 to 2015 is used as the research object.Descriptive statistics,Analysis,regression analysis and robustness test to examine the auditing effect of auditors’ low audit quality,to further improve the audit quality for auditors,and to prevent the auditor’s low audit qualityProvided suggestions and references.The results of the study on the relationship between the financial fraud of the listed company and the punishment of the auditor by the supervisory department show that the auditor has the effect of the low audit quality of the customer.If the auditor of the accounting firm has a low audit quality for a customer(the auditor is punished by the regulatory authority),then the auditor will have a low audit quality for other customers;if the auditor of an accountant firm The customer has a low audit quality,then the auditor of the other audit team of the firm has low audit quality for the customer.