Independent Audit Quality And Transparence Of Accounting Information

Transparency of accounting information is an important factor affecting the healthy and stable development of capital market.According to the study of scholars in the past,both at the macro level and micro level,there are many factors that affect the transparency of an enterprise's accounting information,and audit quality is one of the important aspects.In the past,most of the researches on the impact mechanism of audit quality on the transparency of accounting information were based on the accounting firms and their sub-branches.The results of the research on the impact mechanism were less from the perspective of the certified public accountants.This paper chooses the registered CPA as its research perspective to study the relationship between the audit quality and the transparency of the accounting information in order to enrich the existing research results.This article firstly introduces the background and significance and the research method and the innovation points of the research,then defines the selected variables and analyzes them through principal-agent theory.Secondly,it summarizes the previous research results,and thenanalyzes the selected variables through principal-agent theory,information asymmetry theory,insurance theory of audit demand,corporate governance theory and causal theory to find the probable correlations among the listed variables.Finally,it puts forward the hypothesis.In the part of empirical test,the article firstly introduces the selection and definition of the variables.Then,it introduces the sample data and the data processing of the sample.In this paper,we select the accounting transparency as the explanatory variable,the sum of the probabilities of the financial statement of a company's two certified accountants in the past three years as the explanatory variables and 6 control variables in addition to construct the empirical model.Finally,2362 sets of sample data were obtained.After descriptive statistics and correlation analysis,we conduct multivariate regressionand draw the conclusion that the probability of certified public accountants' failure in the past three years will influence the transparency of accounting information in the current year.Subsequently,further analysis is conducted to examine whether thedifference of accounting firms,and the customer's importance will change the explanatory variable's impact on the explanatory variables.We find that after introducing the variable whether the audit firm belongs to top four or not,the explanatory power of the explanatory variables in this paper has been reduced in the group of �Big Four' while in the other group,the result is the same as the entire sample.The further analysis of the distinction of the importance of customersverifies the hypothesis H3 of this paper and shows that,after introducing the customer importance variable,the influence of the probability of CPA's previous failure on audit quality is more outstandingin important customers' group compared with those in non-significant customers' group.Finally,based on the empirical results,this paper puts forward somecountermeasures and suggestions on how to enhance the supervision of the CPAs and CPA's ability to improve their professional capacity,and explain the shortcomings of this research and the prospect of future research.The research of this paper enriches the theory of CPA's influence on accounting transparency,which is a development to a certain extent on the research results of auditor's characteristic on auditing quality compared with previous researchon firms' and branches' level.This paper comes up with some suggestions on how to improve the transparency of accounting information,which makes the comprehension of accounting firms,CPA individuals and the audited units more profound.