Charge Of Audit, Rotation Of Auditor And Audit Quality

In2001, the SEC requires public companies to disclose the number of audit fees in a morereasonable standard forimproving accounting firm audit quality and the auditing opinionscredibility. In2009, the certified public accountants professional code of ethics expand thescope of rotation and put forward the auditor rotation problem.Exactly, the effect ofimplementation of this system is better or not,and wheather the auditor rotation can improvethe quality of audit. Based on the above two points are the main content of this article studies.Audit fees can get data and the relationship between the audit quality after the researchafterreleased, and it presents a largely tendency of soared in recent years. Auditor rotation systemresearch mainly be based on the new system just be enforced. In recent years, the note ofdisclosure in the annual audit letters by institutional changes, etc, shows that the new systemruns gradually, so wheather the new system can improve the audit quality have to be a problem.This paper analyaizes the relationship of audit fees and audit rotation through theoreticaland empirical analysis.First,theoretical part of this paper introduces the origin of audit, thedefinition of audit quality, the effect of audit quality, audit development course, thenrespectively introduces the public product theory, principal-agent theory and contract theoryand their significance for this article. By studying audit fees having an influence on auditquality,then,we establish charge and quality modeby collecting1503listed information relatedto the auditl.Through panel data unit root test, regression results are high reliability, and then wetake a robust test for the regression results. Results is concluded that the audit fee is associatedwith audit quality.Researching results show that the special audit fees and audit opinions haveproportional relations, explain the higher fees, audit quality damage, the greater the tendency tobuy deliberations. Compared with the developed capitalist countries, in development process ofmarket economy of China, the existence of the economic system is not sound,the problem suchas ignoring shareholders’ interests. Reducing the figure for the passengers to survive becomepreferred. In the view of mandatory audit, an audit work related personnel is still to be a seller’smarket, although it is a big accounting firm and a relatively stable source of customers. In theface of economic interests, a big accounting firm may not remain cautious and independence,then possibility give inappropriate comment.Unknown small cannot follow the auditingstandards and issue appropriate audit opinion, such as before the acceptance of new business,they do not understand the the unqualified cause of audit opinion which Is published. In severalreasons,the higher the audit fees, audit quality is lower; The relationship is negative correlation.In addition, the new system change and audit quality in the process of the study on therelationship between the phase, we chose to use the data from2009-2013for the empirical research, establishes the model of change and audit quality, in this paper, the data using eviewsstatistical analysis software. Among them, the selection under the condition of the voluntary orinvoluntary changes and under the condition of auditor change or office as dependent variable,respectively studying the relation between audit quality and change in state-owned enterprisesand non-state-owned enterprises, come out descriptive statistical analysis and regression results.Auditor rotation and audit quality under the condition of mandatory are positive correlation; innon-state-owned enterprises, the forced rotation certified public firm highly negative correlationto audit quality. In state-owned listed companies because of government manipulation, there isno significant correlation between the analysis results. The results did not show that voluntaryauditor rotation and voluntary rotation certified public firm to audit quality has significantcorrelation, and that voluntary rotation policy can not play a desired role in improving auditquality.The policy to improve th e quality of the audit of our country has a certain guidingsignificance.