The Research Of The Influence Of Audit Market Structure On Audit Quality

In the1980s, China recovered the auditing policies which CPA participate in auditing asindividuals. With the establishment and development of company limited by shares, CPA hasdeveloped rapidly. Auditing with CPA as individuals have proven to be a great help to thehealthy development of China’s capital market.But,some failing cases across the globe havebrought increasing attention to certified public accountants. The question of how to keep ahigh-level auditing quality has become a hot topic in the academic field. Recent research findsout that the structure of auditing market affects the quality of auditing. Research also pointedout that an oligopoly market helps to improve auditing quality. However, empirical researchhave proven that Chinese auditing market is still at a competitive stage, which has a long wayto go to an oligopoly market. This article aims at probing into the question of how to build anoligopoly market, and the factors influencing the auditing quality.The theoretical research uses standardized research method to illustrate the determiningfactors and theoretical basis of auditing market. The empirical study is based on the datasamples of2008-2012bond market, the study has built a model with the auditing quality asthe dependent variable， auditing market structure as the independent variable, while usingpartial correlation coefficient to calculate coefficients of the intensity of auditing market,specialty of auditors and the barriers influencing the auditing quality. Based on thecalculations influencing the auditing quality, it is advisable that decision-makers should makepolicies to improve auditing quality in building an oligopoly market. The results is:1.Our Audit market structure have develop stably, as to the oligopolistic market of lowerphase.2. Although domestic accounting firms develop and expansion in a few years, but thequality of customers is far lower than the international "big four",there are only customersmore than "big four" number of clients, the smaller size of its clients result of low audit fees.3. audit firm industry expertise has a great influence on audit market concentration, thatis to say,the expertise and barriers affect audit market concentration then they are allinfluence the audit quality.4. auditing market concentration、industry expertise、barriers are positive correlation toaudit quality.