Research On The Influencing Factors Of CPA Auditing Quality

Auditing quality is the lifeline of accounting firms and the basis for the development of capital market. However, hidden behind booming CPA auditing industries is the alarming reality-low quality audit.Therefore, the research on influencing factors of the auditing quality is a hotspot.Based on reviewing the related literature at home and abroad, this paper firstly analysis the impact of audit firm scale, audit tenure, client importance, industry specialization, the firm organizational form and legal responsibility to CPA audit quality from theory.Then considering the status quo of our country and the theory analysis results, we propose the research hypotheses.We select the Shanghai and Shenzhen A-share listed company data in 2008 as the research sample. Firstly,we test the impact of accounting firm scale to auditing quality.After which the entire sample will be divided into three sample groups according to firm size.Then we test the impact of auditi tenure, client importance and industry specialization to audit so as to analysis the relation between CPA audit quality and its influent factors.Finally, we put forward some suggestions in order to improve the CPA audit quality.Basic conclusions of empirical study are as follows:Firstly,corporate scale has no significant influence on CPA audit quality.Secondly,the relationship between "Big Four" audit firm's tenure and the absolute of Discretionary Accruals shows U-shaped relation.As to the "Top Twelve " and "Small" audit firms, the relationship between tenure and audit quality is uncertain.Thirdly,when the audit firm clients is more important, the auditor will be more cautious, which means the audit quality will be higher. Finally,industry specialization is a positive factor to audit quality.