Research On Key Influence Factors Of Audit Quality Based On DEMATEL Method

Audit quality is directly related to shareholders, creditors, Governments and other stakeholders’ interests, effecting the healthy development of CPA industry and the effective functioning of capital markets, how to improve audit quality has always been the focus of the government regulatory agencies, the legislature, the public the stakeholders. But, specifically, how to improve the audit quality face two problems, one is analyzing the present situation of audit quality and thinking what factors leading to this situation. Second, there are many influencing factors of audit quality, thinking the time, effort, and resources are limited, if we start from all factors is unsatisfactory, taking into account the links between different factors, if we take measures on key factors, it will improve other factors spontaneously, so there is no need to adopt measures to all factors. Therefore, this paper attempts to introduce DEMATEL method of system engineering theory, quantitative filter key influencing factors from the many factors of audit quality, give some effectively references and guidance significance for regulators to improve audit quality through institutional arrangements and policy guidance for supervision.This study focuses on solving the following problems:(1) how the current audit is in China? (2) What are the causing factors of the current audit quality problem? (3) What are the key factors affecting audit quality? (4) Aiming at the key factors, what measures we should take?According to the analysis results, this paper has identified six key factors:CPA firm size (H1), audit fees (H5), market maturity (H14), industry regulation (H16), a competition in the audit narket(H12), audit services requirements (H17), which affecting the quality of audit.