Implementation Of The New Securities Law And Audit Quality

At the end of 2019,the Standing Committee of the National People’s Congress revised the Securities Law and improved the basic systems of the securities market,aiming at meeting the requirements of China’s high-quality development strategy.As the microcosmic subject of the securities market,listed companies undertake the important task of maintaining the normal trading order of the market and acting as the vanguard of the reform of the securities market.This process cannot be separated from effective internal corporate governance system and efficient external audit.The audit quality,as the presentation of audit results,can effectively measure the external audit situation of listed companies and transmit important information to external information users.The implementation of the new Securities Law has brought changes to the securities market,opportunities and challenges to listed companies and accounting firms;Therefore,to clarify the effectiveness of the reform of the Securities Law and its impact mechanism,we can study and judge from the perspective of audit quality of listed companies;At the same time,the auditor’s expertise and the customer’s internal control will have an impact on the audit effect,so it is necessary to find out whether there is a regulatory effect between the auditor’s expertise and the customer’s internal control in the context of the implementation of the new Securities Law.Therefore,this paper takes all A-share listed companies as research samples,selects data from 2018 to 2021,and takes the implementation of the new Securities Law as a quasi-natural experiment to study the impact of the implementation of the new Securities Law on the audit quality of listed companies from the theoretical and empirical levels.The study found that the implementation of the new Securities Law improved the audit quality of listed companies,and the auditor’s expertise and customer’s internal control quality affected the above relationship,that is,when the auditor’s expertise and customer’s internal control quality were lower than the average level,the implementation of the new Securities Law had a more obvious strengthening effect on the audit quality of listed companies.Further analysis shows that the level of audit fees has an intermediary effect.Finally,we use the propensity score matching method,fixed effect test and variable change measurement method to test the robustness,and the conclusion is still valid.The research conclusion of this paper has reference significance for correctly understanding the implementation effect and mechanism of the new Securities Law,and for accounting firms and companies how to effectively implement the new Securities Law and give full play to the role of the new Securities Law in improving audit quality.