Research On The Impact Of Reputation Damage On Accounting Firms

The audit has an important influence on China's accounting firm reputation,audit can fully reflect the corporate disclosure of financial information and the credibility of the enterprise management status,operation level is good,this is one of our audit market significance,but also reflect the value of CPA audit.The level of audit quality affects the customer's choice of the firm,the audit quality of the firm has a strong attraction for customers.How to measure the audit quality,is usually achieved through measuring audit occupation reputation,and accounting firms can improve audit quality to establish and maintain their professional reputation,one important reason is: the formation or loss of reputation and audit occupation will bring more comprehensive economic consequences for accounting firms.The professional reputation of accounting firms can be very simple and effective to measure audit quality.However,the quality of the economic factors is to be taken into consideration if the occupational reputation mechanism is to be operated effectively and to ensure the high quality of the audit.The reputation mechanism of audit quality formation of economic consequences of governance motivation support is the reputation,if the formation and damage the reputation of the occupation will affect the accounting income,then driven by economic interests,the transaction will increase efforts to improve the quality of audit to establish and maintain the occupation reputation.By reviewing and summarizing the domestic and foreign scholars on the theory of accounting firms reputation effect based on the analysis and selection of the period 2011-2014 punished the Dahua certified public accountants.Analysis on two aspects,analysis of the first angle affected please in the accounting firm reputation,whether the market share and charge firms will be affected by this analysis can reputation will cause economic benefits is affected.On another point,in Dahua certified public accountants commission to be punished,whether there are changes in the quality of the audit,the judgment standard quantity issued non-standard opinions for the firm and accounted for.The study found that when firms suffer reputational damage,will affect the audit quality,audit fees will decrease,in that firm by the Commission administrative punishment,the accounting firm income will be affected significantly reduced,and the opinions will more unqualified audit opinions.This shows that reputation can effectively restrain accounting firms,and it also supports the effectiveness of reputation mechanism.