The Research On Audit Industry Specialization

With the development of the audit market, the reason why the audit industry specialization shown by the audit of the main reasons is that the market for high-quality low-risk audit requirements, as well as accounting firms audit the size of the market's growing requirements of national policy. Accordingly, the audit industry specialization in the development of the accounting firm played an important positive role in the competitive environment, through specialization can guarantee an efficient high-quality audit, the accounting firm to establish a brand reputation to more long-term development and growth. At the same time, the audit industry specialization also achieve economies of scale at the same time, and achieved nothing to do with the cost advantage of scale, access to premium high-audit fees, audit industry experts to reduce the mobility of qualified personnel, reduce audit riskIn this paper, we select Industry-specific audit as a specialized research topics, mainly taking account of the important role of industry specialization in the audit market, as well as the lack of relevant theory. In this study, we conclude the overseas and inland results, innovate this area according to the researching situation about accounting firm industry specialization in our country.From the theoretical analysis to the comparative analysis of femesitic and foreign,it shows that industry specialization has an important significance to accounting firms and audit market.The paper choosing the top ten accounting firm's client information,anaysis statistical description of the overall market to find that our audit market don't show a clear audit industry specialization.Therefore,this paper selects the manufactury industry for sample of listed companies, examines the relationship among auditor firm industry specialization and earnings management.The result indicates that the clients of industry specialist auditors have lower discretionary accruals than clients of non-specialist auditors. It also find clients of auditing firms that have more industry expertise have lower discretionary accruals than clients of those having less industry expertise.In this study, we give the countermeasure from the aspect of auditor firm industy specialization,and we also give the suggestions about how to implement the accounting firm industry specialization.