Internal Control Audit Opinion Shopping Motivation,Audit Market Competition And Auditor Change

With the promulgation of the “Basic Standards for Internal Control” in 2008 and the “Guidelines for Internal Control” in 2010,the market participants are paying more and more attention to internal control audit opinions.The incident in which the listed company and the auditor gave false audit opinions was revealed,and then we found the audit opinion shopping in the capital market.This study summarizes the relevant literature.Whether the shopping motivation of audit opinions affects the change of auditor's behavior of listed companies is still uncertain.At the same time,among the influencing factors of auditor change,the motivation of internal control audit opinion shopping and audit market competition were ignored.Therefore,this study examines the relationship among audit market competition,the motivation of internal control audit opinion shopping,and the change of auditor.Firstly,this study makes a deep analysis of the internal logic of auditor change in listed companies based on the existing theories.Secondly,this study chooses all listed companies from 2012 to 2016,and uses logistic regression model to analyze the correlation among audit market competition,internal control audit opinion shopping and auditor change.Finally,this study distinguishes the ownership nature of listed companies and the size of current audit institutions.Meanwhile,it discusses the relationship among the three in detail.The empirical research finds that there is a positive correlation between internal control audit opinion shopping motivation and auditor's change behavior of listed companies.It shows that there is internal control audit opinion shopping in China's capital market.For the variable of audit market competition,besides the significant positive influence between itself and auditor's change behavior,it also has a positive moderating effect on the correlation between internal control opinion shopping motivation and auditor's change behavior.In addition,the listed companies of non-state-owned holding and domestic “top ten” audit institutions are more sensitive to the moderating effect.This study has added an internal control audit report to broaden the scope of research on traditional annual report audit opinion shopping.And it has taken into account the competitive strength of the audit market.It provides a new perspective for the study of auditor changes.This study provides a reference direction for the regulators to formulate relevant policies,and also gives reasonable suggestions for the audit institutions and users of audit reports to safeguard their own interests.