Accent Sharing Between Signing Auditors And Executives And Audit Quality

Economic decisions are embedded in social relations(Granovetter,1985),as an important characterization of geopolitical relations in social relations,behind the effect of "Local accent"between the auditors and executives reflected the approach of the geographical and regional culture,geographical approaches increase the likelihood of both sides coexist,while cultural simil-arities will help communication between the main body to produce social identity,give more trust to each other.At the same time,Linguistic economics believed that language("Local accent")is a kind of system,and is a kind of "yuan" system,it is the information carrier of customs,norms and the law system(Zhang,2008),so the effect of "Local accent" between the auditors and executives,to a certain extent,also reflects the similar of the customs,norms and the law between institutional,similar to that of formal and informal institutional constraints the behavior of members of the organization,make both sides can be expected the other behavior,and because other's behavior in line with their own expectations,they develop the general trust.On the one hand,this kind of trust,identification and coordination caused by the similarity between identity and norms may help audi-tors to obtain additional information from client companies through strengthening the communic-ation between the two sides and bring incremental value to audit quality.On the other hand,it may increase the probability of collusion and damage the audit quality.Furthermore,the impact of these two forces on audit quality may also be different because of their different strengths.To explore the impact,this paper uses manually collected data on the birthplace of senior executives and signed auditors,combined with "the Chinese language atlas:Chinese dialect volume ","Chinese dialect dictionary:the fifth volume",we systematically identified the hometown's dialect area between the executives(the chairman of the board and general manager)and the signed auditors(project director and review),and based on the regional culture background of the dialect represents elements and system specification,combining the theory of social identity and the institutional environment,analyzes the executives and signed auditor dialect consistency to the mutual influence.Then using the ashare listed companies from 2007 to 2016 as the sample,this paper empirically examines the impact of dialect consistency between senior executives and signed auditors on audit quality,and finds that executives and signed auditors' dialect consistency can significantly injure the audit quality,from dialect areas,dialect pieces to small pieces,while the smaller the scope of dialect use,the more obvious this damage effect.After controlling for the influence of non-cultural and normative factors,the conclusion that the consistency of dialect between the executive and the signed auditors is harmful to audit quality is still hold.Further research shows that the above relationship is affected by the relative negotiation advantage of the signed auditor,the supervision mechanism of the company's information supply,the company's information environment and the regional institutional environment.Specifically,the above effect relationship in the signed auditor lack of industry expertise,customer importance level is high;Low quality of internal control and poor quality of internal control;Low media attention,non-margin companies;Companies with poor regional legal environment and low marketization level are more obvious.This paper expands the research of Du(2017),yuan deli et al(2018)through dividing the relationship between signed auditors and executives with "local accent" into the same dialect area,the same dialect slice and the same small dialect slice from the largest to the smallest according to the regional scope of dialect use.Compared the "Local dialect "with different levels of levels,and whether there is a difference,proved that audit quality is how to be effected by the Accent Sharing between Signing Auditors and Executives and its level.It improves the quantitative depth of the relationship index between the signed auditor and the top management,and deepens the research on the influence mechanism of the relationship between the signed auditor and the top management on the audit quality.This paper provides possible empirical evidence for regulators to supervise"grey" auditors,to improve the provisions on audit independence in regulations and to promote the disclosure of auditors' personal information.