The Impact Of Accounting Firm's Organization On Audit Quality

Since the promulgation of the "Interim provisions on the promotion of the Organization of special general partnerships by large and medium-sized accounting firms(Financial Accounting[2010]No.12)" in July,2010,the large and medium-sized accounting firms in China have implemented the system transformation one after another.However,the effect of system transformation,whether the accounting firm can achieve the goal of becoming bigger and stronger,and improve the audit quality,has aroused the widespread concern of many scholars.Based on the research results of previous scholars,logistic regression,double difference method and experimental design research methods are used to analyze in this paper.On the one hand,it enriches the research methods used in such research,on the other hand,for the development of the firm,it has provided the evidence to improve the audit quality and provided the theoretical basis for determining the development direction of the firm.Firstly,this article elaborates the development of accounting firms in China,the relationship between organizational form,legal responsibility and audit quality is sorted out on the basis of the previous scholars' research results,and makes mechanism analysis whether the organization form of accounting firm in China will affect the audit quality and its influence path,combining the theory of "deep pocket","reputation theory" and"information processing" theory,and the research hypothesis is put forward on this basis.Then,through the logistic regression method,the relationship between the organization form and the audit quality was tested,and the results showed that the audit quality improved significantly after the transaction was transferred to a special general partnership system.But it is impossible to verify the promulgation of the "interim provisions" influence on audit quality with only using logistic regression method,so using the double difference method,and joining the policy issued as variables is analyzed,the results found that accounting firm's organization has a significantly influence on audit quality,after the influence of policy-effect.To this,in order to study the relationship between organizational form and audit quality,this paper uses experimental research method to start from the auditor's individual cognition level,to investigate the changes in the degree of legal risk perception among auditors in different organizational forms,so as to analyze the impact of audit quality.It turns out that the auditor in a special general partnership is more cognizant of legal risks and has higher awareness of legal responsibility than the limited liability system.The result also proves that the organization form of the firm has significant influence on audit quality.The results of comprehensive regression analysis and experimental study found that the auditor's perception of legal risk will also change with the different organizational forms of accounting firms,so as to improve the prudence and independence in the practice process and change the audit behavior,thus improving the audit quality.In order to obtain higher audit quality,this paper proposes the following countermeasures:First of all,we should improve relevant laws and regulations and continue to promote the development of special general partnership;Secondly,we should comprehensively construct the self-regulatory system of certified public accountants,supervise the auditing profession,organize the certified public accountants to conduct regular training,and comprehensively improve their professional quality.Finally,the firm should formulate strict internal management system according to its own development situation,set up a reward and punishment system,and carry out strict management of auditors.