Dual Audit Impact On Audit Quality

A large part of the inland group companies listing Corporation in Hong Kong and Macao and other places are equipped with branch offices or subsidiaries. Before the change of accounting standards in2007, accounting standards difference used inland and Hong Kong and Macao "overseas" area larger, CSRC requires that domestic and foreign institutions B listing Corporation respectively according to the domestic and foreign standards issued two reports and dual audit, A shares of listing Corporation is a statutory audit report issued by China Post to recruit overseas large audit firms are complementary audit in accordance with foreign standards. Dual audit stems from the emergence of China’s accounting standards with foreign difference is too large, then the need to meet the foreign investor demand for audit reports and financial information.In2007, because of China’s accounting standards and international accounting standards gradually converging, inside and outside of the mandatory dual audit system has been canceled. Although there are some listing Corporation to continue in the double forms of audit, but in recent years, more and more domestic firms gradually with the Hong Kong and Macao "outside" the audit rights, the listing Corporation also gradually from the dual audit form. Previous research has shown that dual audit is to improve audit quality, in eliminate dual audit, auditor firms engage in double during the audit from different audit group listing Corporation audit quality is greatly reduced, and the original hire auditors from the same audit group listing Corporation audit quality is essential to maintain the status. B listing Corporation in abandon the dual audit, audit quality is significantly reduced, the audit costs are greatly reduced. While the A shares market in double during the audit audit of high quality, to abandon the dual audit mode and audit quality before flat. In this study, Hisense Kelon this2011to abandon its dual form of audit group listing Corporation as example, trying to prove that give up double after the audit, the group listing Corporation audit quality decreased, China Securities Regulatory Commission and other departments also need strict management of these enterprises, efforts to make more standardized audit market in china.