A Case Study Of The Influence Of The Change Of Legal Liability On Audit Quality

In 2010 and 2012,the Ministry of Finance issued the document "Interim Provisions on promoting large and medium-sized accounting firms to adopt the form of special general partnership",which stipulates that accounting firms must be transformed into special general partnership to continue to participate in accounting related securities business.Under the guidance of policies,China's accounting firms gradually began to change their organizational form.Therefore,in the context of the transformation of accounting firms promoted jointly by the Ministry of Finance and the State Administration for Industry and commerce,based on the perspective of the change of legal liability of accounting firms,this paper selects the data before and after the change of legal liability of Baker Tilly international accounting firms in2009 — 2019,and takes all listed companies serving Shanghai and Shenzhen A shares as samples to explore the organizational form of accounting firms Before and after the transformation,the role of legal responsibility in audit quality is examined to test the impact of the change of legal responsibility promoted by the government on audit quality.The results show that: after the transition from Tianzhi international accounting firm to the special general partnership,the legal responsibilities of the firm and the partner auditor have been strengthened,and their awareness of legal risks has also been improved,and it is conducive to correct the cautious attitude of the work,strengthen the control of audit risks,and significantly improve the overall level of audit quality.The transformation of the accounting firm has achieved remarkable results.The specific performance is as follows: after the change of legal liability,the internal governance mechanism of the accounting firm is more perfect,the professional competence of the accounting firm has been improved,and it is more and more likely to issue non-standard audit opinions to customers,and customers are more willing to choose to turn to the special general partnership for audit,and the audit fees are greatly increased.It can be seen that the special general partnership system transformation plan of China's accounting firms has achieved surprising results.The introduction of a reasonable and effective audit legal system and the supervision of the legal responsibility of the audit market have a positive impact on the accounting industry,which will be conducive to the sustainable development of China's CPA industry and promote it to the international level.