Research On The Relationship Between Client Importance And Auditing Quality

Audit quality refers to the degree of merit of the audit work process and its results.It is finally reflected through the audit report,and it is related to the reliability and authenticity of the company's financial information.It has a significant impact on the judgment of the expected information users.This article examines the impact of auditing quality on the micro-perspective of the accounting firm's customer base.The importance of customers refers to the degree of economic dependence of auditors or auditors on important customers,and there may be consistency in the relationship between audit quality and audit quality,and there may be divergence.That is,for more important customers,the more likely the audit unit will be to maintain prudence for the purpose of maintaining its reputation,thereby improving the quality of the audit;or to abandon the principle of independence in order to obtain high returns from large customers,thereby reducing the audit quality.The level of audit quality has a significant impact on the normal operation of the capital market.The low-quality audit results will affect the investors' judgment of the market and lead to serious economic losses.Therefore,the theoretical community has also studied the issue in an endless stream.The customer is a food and clothing parent to the accounting firm.Under the fierce competition in the market environment,many firms will sacrifice their independence in the face of pressure from large customers.This will reduce audits.quality.However,if the renunciation of the principle of giving up independent audits reveals false audit opinions,the brand and reputation that the firm has built up over the years will no longer exist,and the future survival and development will be difficult.To sum up,when the customer puts pressure on the accounting firm and the auditors,how will they respond and what the relationship between the importance of the customer and the quality of the audit should be?In the following studies,firstly,the current research results at home and abroad are reviewed,the relationship between customer importance and audit quality is collated and analyzed in detail,and the impact of the practice inspection of the CICPA on the relationship between the two is analyzed.And the basis of the signature CPA level for research.The theory is linked to reality,defining the importance of customers,the meaning of audit quality and its influencing factors,and clarifying the theoretical basis for the study of the relevance of customer importance and audit quality.On the basis of this,the hypothesis of the empirical research of this paper is put forward,and from the micro perspective of the importance of the customer,it is explored whether the customer's economic dependence will affect the quality of the audit quality,and then continue to join the practice inspection of the Chinese Association Factors,selecting the publicly disclosed information of listed companies in China from 2014 to 2016 as a sample source,obtained the conclusion of this study through empirical analysis.Finally,according to the actual situation in China put forward research prospects and policy recommendations.Specifically,the empirical test in this paper assumes that the more important the customer is,the greater the value of the customer's accruals for accruals relative to the same accounting firm,which means that the larger the scope of the earnings management of the unit under review,The quality of the audit is reduced.The reason is that CPAs have compromised independent customers and compromised important customers.After the introduction of the practice quality check factor,the absolute value of the control accrual profit calculated using the modified Jones model is still positively correlated with the customer importance,but the customer importance and the practice quality check cross item and the control accrual profit There is a significant negative correlation between absolute values.This shows that the relationship between customer importance and audit quality is significantly positive in accounting firms examined by the China Institute of Certified Public Accountants.This means that the annual practice quality inspection conducted by the China Association for Practitioners helps ensure objective and reliable audit quality.This study explored the relationship between the importance of the customer and the quality of the audit from the two levels of the accounting firm and the signing certified public accountant respectively.It also joined the CPA's practice inspection factor,which is innovative and enriches the relevant research literature.In addition,the combination of theoretical research and empirical research,based on the importance of customers put forward macro-level and micro-level recommendations,which has certain significance for improving the current status of the audit market in China,and then promote the improvement of audit quality.