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The Effects Of Independent Audit Legal Regulation On Audit Quality

Posted on:2018-05-26Degree:MasterType:Thesis
Country:ChinaCandidate:Q GaoFull Text:PDF
Abstract/Summary:PDF Full Text Request
Audit of Certified Public Accountants as a completely independent identification and confirmation of behavior,also known as independent audit.Independent audit as a kind of public goods for stakeholders to services outside the enterprise,its quality determines the economic behavior of stakeholders,which affects the economic benefits of stakeholders and the stability of the capital market.Independent audit of Certified Public Accountants is to ensure that the enterprise financial information accurately to guarantee the outside world,once the behavior deviated from the principle of independence and lead to independent audit result is not true and fair,so it will affect the audit industry disruptive.Therefore,how to effectively supervise the CPA's independent audit behavior has become a problem that must be considered in the field of auditing and law.In western countries,the research on the legal liability of Certified Public Accountants started in the end of the last century,after the outbreak of Enron scandal,the scholars for the research on Certified Public Accountants legal and regulatory issues to a new height.As for audit occupation,disregard of the corporate management and cautious collusion all the loss of independence of audit behavior,the encroachment on the interests of investors and damage the normal operation of the capital market behavior aroused the attention of scholars of law,legal supervision and punishment as they increasingly exploring problems.But on the punishment,the western countries for the infringement of investors and stakeholders of the economic benefits of the audit failure behavior,personal pursuit of civil liability of CPA in China,mainly in the administrative punishment of accounting firms.However,the independent audit subject to administrative penalties and civil penalties is not only to the end of punishment as the audit failure case,regulators punishment objective is to ensure that the audit behavior of independent audit subject can be improved in quality.However,according to the different punishment,whether the accounting firms and Certified Public Accountants improve the audit quality is still uncertain.This paper makes an empirical study on China's 2004 to 2015 accounting firm by administrative punishment and civil penalties,using discretionary accruals as alternative indicators of audit quality,found that the punishment of administrative punishment reaches a certain strength can improve the quality of audit,civil penalties can improve audit quality.At the same time,the innovation of this paper is to examine the administrative penalty according to the different punishment intensity more carefully,and the effect of the civil penalty is tested by the change of DA.Finally,according to the empirical results,this paper draws some conclusions and puts forward some suggestions,hoping to provide a reference for the regulatory authorities to choose the due punishment for CPA firms and Certified Public Accountants.
Keywords/Search Tags:Audit, Legal Regulation, Audit Quality, Punishment Intensity
PDF Full Text Request
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