| Audit is a special kind of products, whose quality is the lifeline. Like other general product market, there are supply-side and demand-side in audit market. The supply-side and demand-side requiring of the audit determines the level of audit quality, so factors that affect audit quality are from both sides. They affect the level of audit quality together and there may be endogenous between them. Therefore, this text takes into account both sides’ factors when studying the impact of audit quality factors.This text uses empirical research methods, combines the main model with additional model, defines audit quality as inhibition of the extent of extent of IPO company’s earnings management is measured by manipulation of accruals, and studies correlation between accounting firm’s size, audit fees, underpricing rate, the proportion of total assets to raise funds, and the nature and share of controlling shareholders with audit quality. The test results show that, accounting firm size and handling surplus profits are proportional, but not significantly; audit fees and handling surplus profits are significantly and negatively correlated;the proportion of total assets to raise funds and the nature of controlling shareholders and handling surplus profits significant negative correlation; underpricing rate and share of controlling shareholders are not significantly correlated. The final results show that cooperation of "Big four""top ten" of audit quality is not totally higher than the "non-top ten" of the audit quality, but it’s not fully proved in the paper; CPAs who charge the higher fees necessarily provide the higher quality audit services; reducing underpricing rate and increasing the amount of raised funds urge listed companies to select the higher audit quality; state-owned shares (state-Legal owned shares) have high demand in audit; however, largest shareholder who held less than10%or more than50%share has shown lack of demand for high quality audit... |
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