The Relationship Between Customer Importance And Audit Quality

The quality of audit is the organic unity of the quality of the audit process and the results of the audit,and the reliability of the financial information is the external performance of the audit quality.The quality of audit is closely related to the interests of the users of the audit report.In capital market,good audit quality can reduce information asymmetry between investors and financiers,help investors correctly judge the value of enterprises,reduce the financing cost of financing providers,and make the allocation function of the market reasonably run.Therefore,the quality of audit has been highly concerned by the theoretical and practical circles.Since the end of the twentieth Century,the continuous failure of audit failed to show that the audit institutions' economic dependence on customers will have a negative impact on the quality of audit.However,after in-depth theoretical analysis and Empirical Study of the two relationships,we find that customer importance also has a positive impact on audit quality.In order to deal with this problem,the Regulatory Committee introduced the audit committee in the corporate governance structure,trying to shift the economic dependence relationship to a relatively neutral third party and eliminate the adverse effects.Firstly,the concept of customer importance and audit quality and the audit committee of the ability to perform their duties were defined,this paper on the basis of the three documents,and the introduction of the rent-seeking theory,reputation mechanism theory and deep pocket theory and corporate governance theory as the theoretical support,through the analysis of the construction of a simple model of adjusting mechanism to influence the importance of customer on the path of audit quality and audit committee discussed the ability to perform their duties.At the same time,we use A shares of listed companies,from 2014 to 2016 years data as sample data,to audit the customer's assets accounted for ratio as the proxy of the importance of the customers,the discretionary accruals absolute value as the alternative variables of audit quality,establish regression model,an empirical test on the importance of customer's impact on audit quality.On this basis,we introduce the performance factor of the audit committee to study the role of the Audit Committee on the two parties.The results show that:(1)customer importance has a significant positive correlation with audit quality,and the positive impact mechanism of customer importance audit quality is more than that of negative impact mechanism.(2)The performance of the audit committee has a moderating effect on the relationship between the importance of the customer and the quality of the audit.The reduction of the performance of the audit committee can weaken the positive effect of the audit quality of the customer's importance.Finally,connected the theory with the reality,the relevant suggestions are put forward from the point of view of the government in order to improve the audit quality.