A Study Of The Influencing Factors Of Listed Companies’ Audit Quality

In the development of capital markets at home and abroad, the audit of the certified public accountant plays an important role in protecting the capital market resources to configure normally and maintaining market economy in fairness, justice and stability, while the premise of CPA audit playing such a major role was protect audit quality. High quality audit services can reduce the possibility of the management of listed companies being audited to manipulate profits in some extent, which will increase the confidence of investors to invest in China’s capital market, and promote the healthy development of the capital market. However, the capital markets appeared consecutively some financial fraud and audit failures scandal, which blow heavily the CPA audit industry and hit badly the reputation, and social credibility of CPA audit itself has also been public questioning, investors relying on financial accounting information reduced trust of CPA audit quality. At home and abroad, the financial and auditing negative news followed, so the public began to suspect the CPA audit quality, and reduces the level of trust to an independent third party audit. In summary, the CPA audit quality issues became the focus of public and theoretical circles at home and abroad attention.In this paper, firstly, the connotation of audit quality have defined and analyzed the theoretical foundation of audit quality. Secondly, the paper selected major factors affecting audit quality, such as the size of the accounting firm, industry expertise, audit tenure, audit fees, non-audit services and corporate governance and so on. Through 2010,2011 and 2012 years Shanghai A-shares listed companies’ financial data to conduct empirical research. Finally, through the analysis of empirical results, the paper has targeted policy recommendations to improve audit quality, in order to be able to make some contribution to improve audit quality.Research ideas of the article includes six parts:The first part is an introduction, including research background and significance, literature review at home and abroad, research ideas and research methods; Second part is the basic concepts and theories related to audit quality, mainly elaborating connotation and factors of audit quality, and putting forward the theory basic of research and conducting theoretical analysis, which laid the theoretical foundation for the empirical study of the text; Third part is the empirical analysis of audit quality factors:selecting influencing factors from the two main aspects of the audit body and object, proposing the research assumption made on the basis of relevant basic theoretical analysis; Fourth part is empirical:this section mainly use statistical software, conducting sample data descriptive statistics and regression analysis, and analyzing testing results; Fifth part is some suggestions Sixth part is the conclusion and implications:as a summary of the article, presenting the final conclusions, innovation and subsequent shortcomings of the article.