Research Of Relationship Between Auditing Auditor's Audit Term And Audit Quality Based On Business Complexity

In recent years,financial fraud cases in foreign and domestic audit markets have occurred frequently.The most famous ones are the Enron incident and the WorldCom incident in the United States,the Toshiba financial fraud scandal in Japan,the Parmalat incident(the Enron incident in Europe),and the Yinguangxia in China.In the summer audit failure cases,these audit failure cases have caused the community to lose trust in the professional conduct of the CPA profession and the willingness to invest in listed companies.To this end,countries around the world have introduced relevant policies to improve the quality of audits.In the early 21st century,the US government took the lead in enacting the Saxbanes-Oxley Act to require auditors to perform regular rotations.Since then,governments have followed suit.The Chinese government has also introduced relevant policies to limit the auditors' auditing term,and provide the same signature registration.The maximum period of continuous auditing of the same company by an accountant shall not exceed five years.So what is the effect of the auditor's mandatory rotation policy?So far,domestic and foreign scholars have set off a wave of research on the relationship between auditing tenure and audit quality,but the results are inconsistent.This paper draws on a large number of literatures that study the correlation between audit term and audit quality,and studies the regulatory effect of listed company business complexity on audit tenure and audit quality.In terms of theoretical analysis,this paper analyzes the factors affecting the quality of auditing,the relationship between the auditing auditor's auditing tenure and auditing quality,and the impact of the audited company's business complexity on the relationship between the two.Foreign related literature.In the aspect of empirieal analysis and research,this paper takes the financial data of A-share listed companies in China's securities market for the three years from 2015 to 2017 as the research sample.This paper measures the quality of the dependent variable audit with the highly acclaimed maneuverability accruals in recent years.As a self-variant,the auditing term of the division is a multivariate regression analysis of the model.The empirical results show that the auditing auditor's auditing tenure and audit quality are generally U-shaped,and the business complexity of listed companies will affect the inverted U-shaped relationship.The turning point.Therefore,this paper puts forward the following suggestions based on the results of empirical research:this paper suggests that the supervisory department should not adopt a one-size-fits-all approach to the auditor's mandatory rotation system,but should implement the mandatory rotation system of the signature auditor according to the business complexity of the listed company.In other words,the regulatory authorities should refine the mandatory rotation system of the signature auditors,and set different auditing terms for companies with different business complexity.In addition,the accounting firm itself should improve the employee recruitment mechanism and daily training mechanism.CPAs themselves should maintain independent,objective and impartial professional ethics and always position themselves as independent third parties.