Research On The Role Of Independent Audit In Bank Credit Decision

With the rapid development of China's market economy,the role of independent audit has become increasingly prominent.By providing financial information verification services for listed companies,independent auditing can not only improve the qualit y of financial information and realize the value added of information,but also provide information guarantee for the scientific decision-making of report users such as investors,creditors(Banks,non-bank financial institutions,etc.),securities analysts and market regulators.Therefore,for the bank,an important user of financial statements,the independent audit should play a positive role in its credit decision-making.However,no one has done a systematic and specialized study on the actual situatio n,that is,whether and how independent audit plays a role in bank credit decision-making,which may be related to the difficulty in observing the bank credit decision-making process and in describing the role of independent audit.In view of this,this paper attempts to investigate the role of independent audit from the perspective of the results of bank credit decisions,namely the actual credit scale,interest rate and term structure of listed companies,in the hope of providing support and reference for the improvement of the professional value of independent audit and the scientific nature of bank credit decisions.This paper systematically studies the role of independent audit in bank credit decision making from theory and practice.On the basis of reviewing the existing research literature at home and abroad,this paper first USES the theory of audit motivation and the theory of signal transmission to demonstrate and analyze the role of independent audit in bank credit decision-making.Then,the hypothesis is proposed to represent the credit decision with the bank credit scale,interest rate and term structure actually obtained by the listed company.The role of independent audit is investigated from the accounting firm's scale,reputation and audit fees.The multiple linear regression model is constructed and the data of a-share listed companies in Shanghai and shenzhen from 2014 to 2018 are used for the empirical test.It is found that the scale,reputation and audit fees of accounting firms are positively correlated with the bank credit scale,negatively correlated with the credit interest rate and positively correlated with the credit term structure.This shows that the independent audit is highly concerned and plays a positive role in the bank credit decision.According to the paper recommendations: accounting firms should insist on doing bigger and stronger;The listed company shall employ a high-quality accounting firm;Users of statements should attach importance to the role of independent audit;Regulators should strengthen supervision and management to optimize the external environment.The innovation of this paper is to systematically study the role of independent audit in bank credit decisions,consider audit fees and measure the reputation of accounting firms by whether they are punished or not.