An Empirical Study Of The Impact Of Auditor Reputation On Audit Quality

In the information asymmetry audit service market,the nature of the trust products in the audit service itself,even if the investor uses the service,it is difficult to directly measure its quality,nor can it judge that the audited financial information reflects The financial status of the company is tangible and reliable.Investors urgently need a standard that directly reflects the quality of auditing and measures the reliability of the company's disclosure of financial information.The auditor's reputation came into being.As the gatekeeper of the capital market,the auditor's main responsibility is to abide by professional ethics and prudent practice to protect the interests of the public.The market will observe the auditors' long-term audit practice results and give their accounting firms and CPA individuals their practice activities.Evaluation and feedback.This has created an auditor's reputation.Reputation can help investors identify audit services and find auditors who provide high quality services.By appointing high-reputation auditors,on the one hand,the company is forced to perform the function of signal transmission of audit activities,improve the allocation of financial resources to improve the quality of financial information,and improve the accuracy and credibility of disclosed financial information;Practicing prudently,striving to maintain the long-accumulated market impression of high-level practice,allowing auditors to reduce the opportunistic motives in their practice activities,reduce agency costs,and enable auditors to overcome moral hazard and avoid falling into an inefficient low-level effort balance.The auditor's reputation is an important guarantee for maintaining the social and economic order,and also a key factor in the market identification audit quality and the development of accounting firms.However,the frequent audit failures at home and abroad in recent years have made the auditor's reputation in an unprecedented danger.This paper argues that the reputation crisis in the audit market may lie in the fact that the reputation of an accounting firm can provide audit quality information for the capital market,but the reputation of an accounting firm can only provide a part of its reputation.As a human capital-type enterprise,human resources is the most important "asset",and CPA is the core of human resources.Studying the impact of CPA's personal reputation on audit quality can make the public discern the difference of CPAs.Sexuality,providing more information about audit quality to the public and stakeholders.In view of this,this paper selects the sample data of the main board A-share listed companies of the Shanghai Stock Exchange and the Shenzhen Stock Exchange in 2015 and 2016,based on principal-agent theory,information asymmetry theory,signal transmission theory,�deep pocket� theory and reputation theory.The detailed description of the model provides an in-depth analysis of the impact of auditor reputation on audit quality and makes assumptions.After thinking about the research of the previous literature,the auditor's reputation definition is subdivided into two levels: the reputation of the accounting firm and the personal reputation of the certified public accountant.The reputation of the accounting firm is divided into high reputation and low reputation by cluster analysis.Two types,the personal reputation of the CPA is considered from the perspective of personal ability.According to its rank in the accounting firm,the CPA is divided into three groups: the partner,the project leader and the partner and the project leader.Research is carried out instead of personal reputation.Through the descriptive statistics,correlation test and multiple linear regression of the collected sample data,the hypothesis of the reputation of the accounting firm and the impact of the personal reputation of the CPA on the audit quality are tested.The empirical results show that the reputation of accounting firms has a positive impact on the quality of audit services provided by them;the impact of CPA's personal reputation on audit quality is different due to the different levels of ranks in accounting firms,among which the personal reputation of partners The quality of the audit services provided also showed a significant positive impact.The personal reputation of the project leader and the personal reputation and audit quality of the partner concurrent project leader showed positive effects,but not significant.Finally,the conclusions of the empirical research are summarized and the countermeasures and suggestions for the accounting reputation of accounting firms and certified public accountants are proposed according to the research conclusions.