Research On The Relation Between Economic Policy Uncertainty And The Auditor Choice On Data Of A-listed Companies

Economic policy uncertainty has gradually attracted people's attention since the 2008 global financial crisis.The US Federal Open Market Committee and the International Monetary Fund have pointed out that the uncertainty of the US and European monetary,regulatory and fiscal policies is an important reason for the economic downturn and slow recovery in the region after 2008.In recent years,with the deepening of relevant research,more and more scholars have begun to pay attention to the impact of macroeconomic policy uncertainty on micro-enterprises.With the increase of economic policies uncertainty,micro-enterprises have to face the increase of financial risks and operational risks.According to the signal transmission theory,to deal with these risks,enterprises will send active signals to the market,such as choosing high-quality accounting firms will convey a signal of high quality of corporate financial information to the market.And whether an enterprise would choose an accounting firm representing high-level audit with the uncertainty increasing.Meanwhile,the audit risk is as increasing as the economic policies uncertainty.To cope with this problem,whether the audit firm would choose a certified CPA that has rich experience to conduct audits,reducing the risk of inspection.These issues are worthy of intensive research.Based on the above questions,this paper discusses the impact of economic policy uncertainty on auditor selection from both enterprise and firm perspective,and refines the impact on the relationship of above two from corporate nature and marketization process perspective.The conclusions of this paper are as follows:Firstly,the uncertainty of economic policy is positively related to the accounting firm that chooses to represent high audit quality.The higher the uncertainty of economic policy,the more motive the company is to pass on its own signals with high-quality financial information,encouraging them to choose Highquality accounting firm.Secondly,the uncertainty of economic policy is positively related to whether the signed CPA participating in the company's audit business has rich audit experience.The greater uncertainty of external economic policies,the higher auditing risk that accounting firms facing.At this time,selecting auditing certified accountants with auditing experience will help to reduce the risk of inspection.The contributions of this paper are mainly reflected in the following two aspects: On the one hand,this paper expands the research about the impact of economic policy uncertainty on auditing.Current research on the topic mainly focuses on ability of investing,financing,lending as well as cash holdings and accounting conservatism etc.However,there is a blank of economic policy uncertainty's influence on auditing,obviously,this article provides some supplements.On the other hand,as far as auditor selection is concerned,this paper studies from both enterprises and firms perspectives,and puts forward the specific coping strategies to help their practical application.