Auditor Change,Abnormal Audit Fees And Accounting Conservatism

With the development of the capital market,participants in the securities market have paid more attention to auditors.They hope to obtain real financial report information through high-quality audit services to reduce investment risks and improve the effectiveness of investment decisions.In modern joint-stock companies,due to the existence of principal-agent relationships,managers may perform surplus maneuvers in order to achieve the goal of whitewashing performance and taking out funds.In order to prevent its irregularities from being discovered,managers will actively seek "collusion" with current or succeeding auditors.As an independent organization responsible for its own profits and losses,the audit organization also has the incentive to choose to cooperate with the audited entity or even cover the financial fraud activities of the audited entity in consideration of factors such as huge profits,which will lead to failure of the audit.So,what kind of influence does the company's opportunistic behavior have on accounting conservatism?Under the background of China's special system,will the performance of state-owned enterprises and non-state-owned enterprises have different performances in accounting conservatism?In view of this,this paper divides the sample into whole sample,state-owned enterprise sample and non-state-owned enterprise sample to study the correlation between auditor change,abnormal audit fees and accounting conservatism.First of all,this paper reviews the domestic and foreign scholars' research on auditor change,abnormal audit fees and accounting conservatism on the basis of the study,to make a review of the relevant research.Then,this paper analyzes the internal correlation between auditor changes,audit fees and previous non-standard audit opinions,and analyze the mechanism of auditor change,abnormal audit fees and accounting conservatism,then puts forward the research hypothesis.This paper selects the data of Shanghai and Shenzhen A stock listed companies from 2012 to 2016 as the research sample,and uses the multiple linear regression method to make an empirical analysis on the sample data using Statal 2.0.According to the nature of property rights,the research samples are divided into total sample,state-owned enterprise sample and non-state-owned enterprise sample were grouped to examine the relationship between auditor change,abnormal audit fees and accounting conservatism.The research shows that:(1)The companies that received previous non-standard audit opinions and had changed auditors have lower levels of accounting conservatism.(2)The companies that received non-standard audit opinions in the previous period and had higher abnormal audit fees have lower levels of accounting conservatism.(3)Compared with the state-owned enterprises,the issue of non-standard audit opinions in the previous period and the occurrence of auditor changes or abnormal audit fees had a more obvious negative impact on the accounting conservatism of non-state-owned enterprises.Finally,according to the results of the empirical analysis,this paper puts forward the corresponding countermeasures and suggestions from three angles of the enterprise,the investor and the management authorities,and explains the limitations of the research,and puts forward the research prospect.