The Effect Of Corporate Governance On The Demand For Auditing Quality

The healthy development of capital market is based on the supply of reliable information of listed companies. The auditing quality affects the reliability of accounting information. Therefore, the quality of auditing is essential to the stability and development of capital markets.However, with the steady development of China's capital market, there have been a series of information disclosure scandal of listed companies. From "Qiongmingyuan case", "red light industry case" and "Dongfang Boiler" case, to "Yinguangxia case", "Maikete case", "Jilinaodong case", with the emergence of lots of auditing failures, information assurance functions of the auditing receives unprecedented attention, Investors have great doubts about the quality of auditing.These companies due to deceptive Behaviors in financial information have been strictly investigated and punished by Chinese Securities Regulatory Commission, Ministry of Finance has revoked the qualifications of relevant accounting firms, persons concerned were also held the corresponding responsibility, but that is still unable to prevent similar incidents from happening again.Of course, America's "Enron fails", "World Communications", and other financial scandals shows that in America whose capital market is relatively well, auditing quality is also not so reassuring. These auditing failures have seriously affected the credibility of the auditing profession, making the issue of auditing quality of listed companies becomes the research focus of the accounting and auditing profession once again.In recent years, China's capital market has been developed rapidly, the number of listed companies is increasing year by year, auditing demand is growing continually, while the development of the audit market makes accounting firms have the ability to provide high quality audit services. Whether listed companies will choose high-quality auditing not only relates to the quality of the information of listed companies but also relates to the protection of legitimate rights and interests of shareholders and the stability and development of capital market, research in this area has a strong practical significance.This article consists of three parts and seven chapters which are introduction, body, conclusion and follow-up study suggests.The first part is Chapter 1, introduction. This chapter introduces research background, significance, literature review and study path, content and point of innovationThe second part is body part and the core content of the article, including Chapter 2 - Chapter 6.Chapter 2, theoretical basis of corporate governance and auditing quality.Chapter 3, external governance and demand for auditing quality of listed companies.Chapter 4, internal governance and demand for auditing quality of listed companies. Chapter 5, empirical test on the factors affecting auditing quality demand of listed companies.Chapter 6, suggestions to promote the demand for auditing quality of listed companies.The third part is Chapter 7, conclusions and future research.The main innovation of this paper is to establish a broad research proposition about auditing quality demand of listed companies. Currently, the comprehensive study on demand for auditing quality is still not much.Overall, scholars home and abroad mainly study the demand for auditing quality around the basic elements of internal governance , there are few study according to external corporate governance of listed companies, the conclusions are biased.This article studies the demand for auditing quality from the perspective of external governance and internal governance, the study area is more comprehensive, the conclusion is more in-depth, the recommendations more effective.