The Influence Of The Transformation Of Accounting Firms On The Quality Of Internal Control Information Disclosure Of Listed Companies

Since the American government issued the SOX act,our country promulgated the “Internal Control Guidelines of Shanghai Stock Exchange” and “Internal Control Guidelines of Shenzhen Stock Exchange” at June 5,2006 and September 28,2006,successively,indicating the beginning of the mandatory disclosure of internal control in China.Then,"The Basic Norms of Enterprise Internal Control" and "The Guidelines of Enterprise Internal Control" have also been published at May 22,2008 and April 26,2008.,In the mandatory disclosure of internal control information at the same time,began to enforce the internal control audit.Under the condition that internal control information should be disclosed compulsively,the internal control auditing began to be enforced.Nowadays,the influencing factors to disclosure quality of internal control information attracted increasing researchers.With the enforcement of internal control audit,people focus on the influence of external regulators as well as the company governance structure or itself characteristics.The accounting firms are able to ensure the internal control information disclosure quality of the audited unit reasonably via performing internal control auditing.In present work,based on the research sample of Chinese A-share companies listed from 2010 to 2014,we studied the impact of organizational form of accounting firm on the disclosure quality of internal control information of listed companies.Generally,in China,the audit report must be signed and sealed by a partner who undertakes final review responsibility for the audit project,and a certified public accountant who is responsible for the project,so the legal liability of the audit report alights upon the auditor.When the organizational form of accounting firm transforms from limited-responsibility to special ordinary partnership,auditors with major or deliberately fault should assume unlimited liability in the loss.In this case,because of the enhanced legal liability and claim risk,the auditor could become more independent and cautious to improve audit quality,which is also positive for the internal control information disclosure quality published by listed company.According to the research results,the transformation of accounting firm organizational form is good for the improvement of internal control information disclosure quality.Special ordinary partnership can produce desired effect of governance policies on the auditor's audit behavior,and provide theoretical foundation for guaranteeing disclosure quality of internal control information.