Research On The Motivation And Consequences Of Listed Companies Change The Accounting Firms

China Securities Regulatory Commission provides that Shanghai and Shenzhen listed companies must hire an accounting firm to audit the annual report, and CPA publish audit opinion and issue audit report about the truth and legality of the listed companies’financial statements. But listed companies have the rights to choose the right accounting firms which will be paid compensation from the listed companies, then the listed company which want to achieve improper motive most likely to change the accounting firm which it ever chosen. Domestic and international securities market regulators pay close attention the behavior of listed companies to change the accounting firm, China’s Securities Regulatory Commission and the Association of Certified Public Accountants have enacted relevant standards to monitor and suppress the phenomenon of CPA changed, and has obtain some results that China’s listed Company changed the accounting firm’s situation began to decline every year from 2007, the proportion of 2010-2012 at 5%-7%, no significant upward or downward trend, but still higher than the international general level of 3%-4% and non-standard audit opinions decreasing, indicating the existence of some listed companies have been likely to realize their own interests and needs of bad by changing the accounting firm. The malicious changing behavior of listed companies not only will bring out losses to external stakeholders, but also will infringe the independence of CPA, then influence the healthy development of the audit market and the efficient allocation of social resources. Therefore, this article taking a combination of theoretical study and empirical analysis, has divided into five parts to demonstrate the motivation and consequence of listed companies change the accounting firms, the first chapter has discussed the background and significance of research questions in this paper, found out the research status at home and abroad through the literature review, and then proposed framework and the main innovation of this paper; the second chapter elaborate the definition, classification and related theories of CPA changed, from the level of audit requirements learn more about the listed companies’motivation to change CPAs; the third chapter has make empirical test with establishing Logistic regression models to verify the impact of motivations to change, and to analyze the results of the regression; the forth chapter combined regression results, has analyzed the malicious changing accounting firms’ behavior of listed companies bring consequences to accounting firms, audit market and society; the fifth chapter has put forward policy proposals from three areas including accounting firms, listed companies and regulatory authorities, hoping to help regulatory control and effective prevention to the changing behavior.