The Research On The Influence Of Audit Quality On The Risk Of Shadow Banking Business Of Commercial Banks

In 2018,the two sessions pointed out that it needs to promote the opening up of financial markets steadily,and strengthen the supervision of shadow banking.At present,the growth of shadow banking in China is rapidly.But due to the regulatory arbitrage of shadow banking,the excessive expansion of shadow banking is bound to threaten the stability of the financial system.Therefore,it is necessary to seek more effective regulatory channels to strengthen the supervision of shadow banking.There are few empirical studies on CPA(Certified Public Accountant)auditing to play the role of financial supervision.Therefore,this paper is to make up for the shortage of current research.First,this paper discusses the relationship between the scale of banks' engage in shadow banking and the banks' operational risk.Next,this paper verify the impact of high-quality audit on the risk of shadow banking in commercial banks.Finally,this paper explores the role of audit quality on the risk of banks engaging in shadow banking from bank's equity concentration and legal protection level.Based on this research motivation,this paper takes a sample of commercial banks from 2007 to 2017 to examine the important role of high-quality audit in supervision the banks' risk of engaging in shadow banking.The research draws the following conclusions: The larger the scale of the banks' shadow banking,the higher the banks' operational risk;Compared with the “non-Big 4,” the international “Big 4” inhibits the risk of banks' engagement in shadow banking more effectively,and has better inhibitory effect in the large state-owned banks and listed banks;The banks under the environment of higher equity concentration and lower legal protection have higher risks for banks to engage in shadow banking,but “Big 4” can inhibit this risk effectively.The paper shows that high-quality audit can provide more reliable financial information for the banking regulatory authorities,reveal the potential and existing risks of the shadow banking,and control them timely,which making up for the deficiency of internal and external supervision of banks.This paper provides a basis for the supervision of shadow banking of banks and the improvement of audit quality of accounting firms.