Intenational "Big Four" Audit And Risk Information Disclosure In Annual Report

Information is the basic guarantee of the effective operation of market economy,in the securities market,one of the party in the transaction with information advantage often makes"bad behavior" due to the problem of asymmetric information,which restricts the healthy and orderly development of the market.Recent years,the market participants have strong demand for the non-financial information of risk information.Listed companies information disclosure is a bridge for investors and the public to get fully information of the company.The CSRC also pays more and more attention to the non-financial information disclosure of listed companies and encourages them to disclose the future development and non-financial information in detail in the Management Discussion and Analysis(MD&A)part of the annual financial report.Although the laws and regulations on annual report information disclosure are constantly revised all the time,it is usually only a patch for existing problems,which cannot reach the state of pre control,which provides an opportunity for some listed companies to selectively disclose risk information.Since the supervision department cannot reach every aspect of the listed companies,as the "regulator" in the society,whether the independent third-party accounting firms will affect the risk information disclosure of listed companies?In order to further research whether the accounting firms can produce“overflow effect,in assurance service,reveal the significance of the accounting firms in market surveillance,and at the same time to discuss whether the different choices of accounting firms can affect the listed companies' information disclosure.From the perspective of external independent audit,this study based on the theory of independent audit requirement and high quality audit service motivation,divided risk into internal risk and extermal risk according to its nature,analyzing the relationship between risk information disclosure and accounting firms of A-share listed non-financial companies in Shanghai and Shenzhen from 2013 to 2017 using Stata analysis software.The conclusions are as follows:firstly,the "big four" audit can play a"spillover" effect and significantly improve the level of total risk information disclosure and external risk information disclosure in the annual report of listed companies.Secondly,due to the concealment of internal risks,it is difficult for auditors to identify them in a short time.Therefore,there is a significant negative correlation between "big four" auditing and the level of internal risk information disclosure in the annual reports of listed companies.According to the research results there are some suggestions:first,strengthen the construction of talented team of accounting firms,and the supervision over the occupational quality;second,perfect the laws and regulations on risk information disclosure of listed companies,and enhance the breadth and depth of listed companies' risk information disclosure.