Research On The Relation Between CPA Firm Reputation And Audit Quality

Since twenty-first Century, the risk of fluctuations in the global capital market intensified, Domestic and foreign often occur listing Corporation financial scandal, explore the reasons for these cases, all reflect a common problem:listed companies financial report audit quality is not good. In order to protect the public and the interests of stakeholders, to restore public confidence in the accounting firm, the Chinese government began to strengthen the supervision of the auditing profession, hopes it can promote the establishment and maintenance of the domestic firm’s reputation, and to improve the accounting firm’s audit quality.The information age, Reputation more and more interests of participants attention, often refer to obtain public reputation degree of trust and praise. In the audit market, produced high quality audit service reputation that audit quality is the public accounting firm on the trust and praise, and good reputation can bring more business and pay for the accounting firm. In recent years, accounting reputation has been widely concerned in China’s audit market, the government has made clear that the accounting firm to establish the strategic goal of sustainable development, based on building the "century old store". The reality is that the construction of domestic firms have started to pay attention to its reputation, in China’s audit market there have been some has a certain well-known firms merger phenomenon, they are merged to to promote the auditing quality by improving their reputation in the market, enhance market competitiveness. Such not only can get the number of audit revenues and customer more, also can do and international four big fight, to break the monopoly of international firms in the China of audit market.This research review and summary on the related literature at home and abroad accounting reputation and audit quality, introducing the principal-agent theory, signaling theory, insurance theory and the theory of reputation as a full theoretical support. First, through the study of existing literatures, expounds the actual situation of domestic audit market, the reputation of CPA firms and some existing problems, and further analysis of the influence of auditor reputation of audit quality. Secondly, based on the Shanghai and Shenzhen stock market2010-2012A shares of listing Corporation financial report data as the research object, through the establishment of regression analysis model, it is positively related to audit firm reputation and audit quality and the two basic unanimous conclusion. Finally, aiming at the problems through the study found, are given from two angles of macroscopic and microscopic countermeasures.