Impact Of Voluntary Interim Report Audits On Annual Report Audit Quality And Fees

Under the market economy system,many investors,creditors,management,shareholders,and other contractors have to conduct transactions.One of the major guarantees for the smooth conduct of transactions is external audit services.Therefore,companies have created audit service requirements and Based on this,an independent audit market emerged.The quality of independent auditing in the audit market composed of supply and demand parties and the entire audit market will be greatly affected by the operation of the demand side.In our country,no matter the regulatory system or operation mechanism of the capital market is increasingly perfected,and the market environment is volatile and complicated,there is an urgent need for high-quality audits that bear social supervision and assurance responsibilities from the inside to the outside.This segmented auditing business of voluntary auditing of interim financial reports came into being.Under the current lack of institutional constraints on interim financial report audits,some companies in listed companies will still choose to conduct voluntary interim financial report audits due to various considerations,which will have corresponding market consequences.So how does this move by listed companies affect the quality and fees of annual statement audits?Based on this,this article takes A-share(non-financial)listed companies from 2009 to 2018 as a sample,and uses a combination of empirical research and literature research methods to study the impact of voluntary reporting audits on annual report audit quality and costs,and the independence of senior management Regulatory effect.The conclusions are as follows: First,the voluntary interim report audit has a positive effect on the annual report audit quality of enterprises.Second,voluntary interim audits are significantly negatively related to the annual audit costs of companies.Thirdly,on the basis of enhancing the positive promotion effect of voluntary interim audit on the quality of annual report audits,the independence of strong executives makes the negative suppression relationship between voluntary interim audit and annual report audit costs more significant.The research significance of this paper is reflected in the theoretical and practical significance.Theoretically,the study of the impact of voluntary interim audit and senior management independence on annual report audit quality and costs has enriched the research on the consequences of voluntary interim audits and the research on the influencing factors of annual report audit quality and costs;the introduction of executive independence As a moderating variable,it further reveals the adjustment mechanism and deeper logic of the independence of executives between the quality and cost of voluntary interim audit and annual report audit.In a practical sense,first of all,it has guiding significance for encouraging companies to voluntarily report,optimizing the company's internal management mechanism,improving the annual report audit quality of the company,and achieving efficient savings of audit resources.Policy development and improvement in this area are also of reference significance.Finally,it helps investors to accurately analyze the voluntary auditing behavior of enterprises and their economic consequences,and helps investors make correct decisions.