The Research To The Influential Factors Of Auditor Reputation

Since the "Enron" incident broke out, auditing reputation has drawn more and more attention. Reputation is a manifestation of intangible value, which can provide accounting firms with invisible wealth and dominant welfare. Audit market is a typical information asymmetry market, unobservability of audit service products makes the establishment of auditor reputation mechanism playing an important role on the audit market. First, the establishment of auditor reputation helps keep the auditor independence, improve audit quality and audit fees, etc., and the damage of auditor reputation will cause market reaction and spillover effect, at the same time giving rise to the problem of reputation repair. Second, the establishment of auditor reputation can reduce the information asymmetry of audit markets and avoid the "adverse selection" and "moral hazard". Finally, the establishment of auditor reputation can reduce agency cost between the principal and agent, avoid the opportunism behavior. And the research of auditor reputation influential factors will contribute to the establishment of auditor reputation mechanism. So, it has theoretical significance and realistic significance to study influence factors of auditor reputation, which can enrich and supply the research achievements of relevant fields.Based on the relative dates of A-share listed companies in 2010-2013, on the foundation of OLS regression methods, based on the perspective of audit pricing and market reaction, this paper tries to explore the influence of the external factors (system punishment, media reports) and internal factors (auditor size, auditor specialization, audit quality) on auditor reputation, which are measured by audit fee and the correlation coefficient between corporate value and profitability. The research found that the system punishment and internal factors (auditor size, auditor specialization and audit quality) have significant correlation with auditor reputation, but media report has no significant correlation with auditor reputation, which needs to be further studied.