Enterprise Ownership Accounting Firm Industry Specialization And Audit Quality Empirical Research

With the rapid economic and social development of our country, the capital marketplays a more and more important role in the national economy, the audited accountinginformation has become one of the most basic information of capital market, so the auditquality has become the critical assurance of the authentic financial reports. Based onexisting research, this paper improves the measure of audit quality, used by probability ofnon-standard opinions. Then it studies the relationship of industry specialization and auditquality, combined with the ownership property of listing corporation, to explore whetherthere are differences between state-owned enterprises and non-state owned enterprises. This study not only provides empirical data support for audit firm industry specializationdevelopment, but also provides the important theory support for the reform of state-ownedenterprises and improving the audit quality.This paper introduces the asymmetric information theory, principal-agent theory,division of labor and specialization theory and risk oriented auditing theory, beforeanalyzes the industry specialization influence on audit quality and effects of enterpriseproperty on the audit quality. This paper uses,2007-2011for the fifth consecutive, a totalof7600samples, using correlation analysis, logistic regression and other statisticalmethods for the empirical research, and the conclusions as follows:(1) Industry specialization and audit quality have a positive correlativity in the5%level, showing that industry specialization helps the accounting firm to provide highquality audit services;(2) In non-state owned enterprises, the accounting firm industry specialization isassociated with audit quality, statistically significant at the5%level; but in the state ownedenterprises, the correlation of auditor industry specialization and audit quality was notsignificant even in the10%level. It shows that the different kinds of ownership property toa certain extent affect the audit firm industry specialization function.Based on the analysis of the results, this paper put forwards the corresponding policysuggestions of improving the independent audit environment and perfecting the mechanismof certified public accountants business.