Study On The Infectious Effect Of Low Audit Quality Of Auditor

Intensified due to dispersion of equity and management lead to two rights separation and specialization of ownership because of the professional ability is not high,the lack of energy and other limitations,therefore is unable to exercise all the rights,so will the corresponding rights entrusted to professional ability strong agent to exercise,audit can develop the work.Financial statements audited by auditors are not only an important basis for investors,but also an important part of effective corporate governance.Accounting fraud scandal broke out frequently in recent years,however,but the auditors failed to find financial statements fraud and issue the appropriate audit report,it makes the public has a question on the auditor's audit quality.There are three possible reasons for a low quality audit:the first is only due to the accidental factors such as the complexity of the audit;The second reason is that there are some system problems such as unreasonable quality control procedures.The third possibility is that the auditor's personal quality is low and the professional competence is insufficient.The contagion effect of this paper is based on the third possibility.This article in the normative research and empirical analysis,on the basis of two kinds of methods,combined with China's special background of the auditing profession related theoretical knowledge of the market,choose 2008-2016 a-share listed companies in China for initial samples,to explore the auditor personal presence of contagion effects of low audit quality.First,collects and analyses the foreign and domestic research on audit quality of the related literature review,the key combed the at the individual level and the auditor firm level and the research status of low audit quality of contagion effects.Second,the research on financial restatement and audit failure,lists the main domestic and foreign researchers is how the definition of the definition of financial restatement,and explained in this paper,taking the financial restatements as an alternative variable of audit failure.Followed by using relevant data of listed companies in our country,by constructing the data model,by using the modified Jones model to calculate the steerability accrued to measure audit quality,using the econometric analysis software such as STATA14.0 regression analysis was carried out on the sample data,The conclusion is that:(1)audit failure of the audited financial report,the audit quality of other companies audited by the auditor is also lower,that is,the audit quality of the auditor has horizontal contagion effect;(2)the audit quality of auditors who have been audited for audit failure will be lower than the audit quality of other auditors in the following years,that is,the auditor's audit quality has a longitudinal contagion effect;(3)the signature of the failure auditors have worked with the auditor,the audit quality is lower than never cooperate with auditor failure the signature of the auditor,the auditor's audit quality is cross contagion effects.Finally,based on the status of the existing audit market and combined with our country special national conditions put forward some Suggestions,and points out that based on the data acquisition and measures such as selection can be improved,and points out the future for these can deepen the research target,continue to study and put forward some opinions for future.