The Influence Of Audit Tenure On Audit Quality Of Accounting Firms:a Case Study Of Electrical Machinery Industry

Since the audit boarded the stage of history,occurred in the world of financial fraud has been an endless stream.After a series such as "Enron" and "WorldCom" occurred in the United States,China's stock market also have burst a lot of financial fraud cases.The study of these fraud cases found that they have one thing in common is that the audit tenure is very long.This makes people can't help doubting,what the relationship between the audit quality and audit tenure is.Electrical machinery manufacturing industry is the earliest opening,the fastest growing,the highest degree of internationalization of the industry in China.This paper selects the Shenzhen A shares listed on the electrical machinery manufacturing enterprises as the research object,to explore the influence of audit tenure on audit quality in electrical machinery industry.In this paper,we use theoretical research and case research as well as qualitative analysis and quantitative analysis.The theory part,firstly introduces the theoretical foundation of the whole article--"principal-agent theory",and introduces the contents of audit tenure,and then introduces the influence factors of audit quality and the new perspective of this paper.Finally this paper talk about the impact of audit tenure on audit quality from the auditors' professional competence and independence.In the case part,In this paper,the audit tenure is divided into three categories: the first,the short term(2-4 years)and the medium and long term(5 years and above),respectively,from the perspective of audit opinion and earnings management perspective to analyze the impact of audit tenure on audit quality.The results showed that: The longer the audit tenure,the lower the audit quality.Finally,the paper puts forward some suggestions.In this paper,the electrical machinery manufacturing industry as an example,discusses the influence of audit tenure on audit quality.It has a certain practical significance in rotation system of the electrical machinery manufacturing industry in our country and even the whole market.