Empirical Research About The Influence Of Accounting Firm's Industry Expertise On Audit Quality

With the increase of marketization degree,result in more elaborate division of labor and specialization.The market is increasingly inclined to pursue high-quality products with professional and targeted services.The division of audit market prompted accounting firm to foster their respective industry expertise,to decrease the cost of product information and risk,and optimized allocation of resources,promote the specialization and technology innovation,which affects audit quality.Moreover,under the system background of the relevant policies and measures,the strategy of industry specialization is highly valued.In order to obtain and maintain competitive advantages,accounting firms are also focusing on whether the cultivation of industry expertise to provide high-quality differentiated products for the market.Therefore,this study puts forward the research topic of the influence of accounting firm's industry expertise on audit quality.This study adopts the method of literature research,comparative analysis and empirical analysis.Firstly,it reviews and summarizes the domestic and foreign research on the professional expertise and audit quality of the firm,and establish the relevant theoretical analysis framework.Its content includes:Based on the theory of division of labor to interpret the trend of specialization of the firm in the process of market specialization.In the case of the principal-agent theory as the axis,the information asymmetrical theory is the motivation,the demands of the market to the high quality audit service are put forward.The reputation theory guides the firm to develop the industry expertise,establish the industry reputation and realize the virtuous circle development of industry specialty,industry reputation and high audit quality.Based on relevant literature review and theoretical analysis,this study puts forward the assumption that the industry expertise of accounting firms will influence audit quality.To provide theoretical basis for the government's biger and stronger policy.The biger policy is to encourage the firm to expand the scale,the stronger policy is to strengthen the industry expertise level to enhance the competitiveness of the industry.The study further examines the impact of firm size on the role of industry expertise,which is used as a research hypothesis 2.Secondly,comparative analysis is made on measures of industry expertise and audit quality,then select the appropriate indicators to ensure the correctness of the research conclusion.Finally,in the empirical research section.Based on the sample selection of the Shanghai and shenzhen stock exchange A-share market manufacturing industry,this paper selects five representative industries in the secondary industry of manufacturing industry from 2014 to 2016 as the research samples.After analyzing the current status and development status of industry expertise in the chosen industry,the influence of professional expertise on audit quality was analyzed through Excel and SPSS.Its research conclusion indicates that the industry expertise of the firm has a significant effect on audit quality.Further study found that the accounting firm scale,the greater the industry expertise for the improvement of audit quality,the more significant,and the medium firm size,the industry expertise,there is no significant effect on audit quality improve,but firm scale is small,industry expertise could not suppress a surplus of the audited units handling behavior,thus reduce audit quality.This research conclusion provides the theoretical basis and support for the firm to strengthen the policy formulation and the firm's development strategy.Based on the analysis the current situation of industry expertise and research conclusion,this study presents three suggestions.Firstly,establishing industry reputation libraries to improve audit quality.Secondly,strengthening the system of industry expertise to improve audit quality.Finally,expanding the size of the firm to develop industry expertise.It is hoped that this research conclusion can open more paths for the development of CPA industry in China.