A Research Of Independent Audit Quality Of Listed Companies

In recent years,with the development of capital market,accounts and the CPA firms in China have a fast growing speed and they make a due construction to the development of economic.Audit 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,and there have been many major audit failures which have brought immeasurable loss to capital maket. According to the penalty notice made by the Minstry of Finance and the Audit Commmision in recent years about Certified Public Accounts and the CPA firms,there are some problems very seriously in the recent annual audit of listed companies in China.The crisis of public confidence in CPA gets worse. Therefore, the study on audit quality audit is one of the hots and difficult problems in the area of the current audit study,and it becomes one of the key issues need to be resolved by the current capital maeket as well as CPA profession that how can we inprove the audit quality. Through the review and evaluation the theory of audit quality and on the basis of vertical and horizontal comparison of the present situation of the independent audit quality of listed companies, we choose116listed companies that were issued non-standard audit report of2010, and paired them by the ratio of1:1,and constitute a study sample of232listed companies.we take accounting firm scale,audit fee,audit tenure,the nature of property right,the proportion of the first shareholder,the scale of board of directors,two duty relationship, the proportion of internal director,executives shareholding proportion,the ratio of liabilities to assets,the total assets of the main profit rate as research variables. Through the logistic model we verify the hypothesis of this paper,and derive estimation model.The results show that:audit fee, audit tenure, the nature of property right, executives shareholding proportion, the ratio of liabilities to assets, the total assets of the main profit rate have significant correlation with the type of audit opinion; audit tenure, the nature of property right, the proportion of the first shareholder, the scale of board of directors executives shareholding proportion, total assets profit rate, two duty relations, the proportion of internal director have negative correlation with the non-standard audit opinions; the ratio of liabilities to assets are related with the non-standard audit opinions.Finally, through the research conclusions, we propose the methods to promote the audit quality of listed companyies:one is to improve the system of independent audit of listed companies;the other is to improve the governance structure of listed companies..