| Audit quality of listed companies will directly affect a large number of stakeholders' interests and the Social economy life's orders. Only comprehensively improving the quality of audit,can we give better play to the supervisory role of registered accountants and promote China's audit causes to achieve greater development in the new stage. Big 4 are the synonymous of high-quality audit services in the West audit markets, as they have absolute competitive superiority in price and market share, however, some audit cases of China's capital market in recent years also involve the Big 4, these incidents reflect the fact that the Big 4 accounting firms in China similarly encounter serious quality problems in the course of the audit, which make the Big 4's status begin to change in the eyes of the customer. At the same time, China's accounting firm raises a wave of formalization once again, and the main target of this formalization campaign is to raise the competitiveness of domestic firms and make them bigger and stronger. In this context, whether Big 4 will systematically reduce audit quality in the Chinese market or their audit quality is not higher than the domestic accounting firms become a exploring question.This paper firstly analyzes the theory on the effect of the auditor size on audit quality, and then from the point of users,it uses earnings response coefficients (ERC) method to empirically test audit services quality of the Big 4 in China and the domestic big auditing firms.The sample of empirical study is based on listed companies which are audited by the Big 4 and the top ten domestic auditing firms from 2004 to 2006 in China's A-share market, the empirical result show that: There is not significant difference on perceptions of audit quality of the Big 4 and the top ten domestic auditing firms, so it provides theoretical supports to the future development of China's accounting market and transformation in accounting firms. |
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