Certified Public Accountants Audit Quality And An Empirical Study On Earnings Management Of The Enterprise

CPA attestation engagements by enterprises, can solve the problem of asymmetric information between business owners and managers, reducing the cost of business agency contract. It is a safeguard financial statements meet investors and business owners need supervision mechanism. In China, accounting firms with the maturity of the development of capital markets, gradually began to "bigger and stronger", the process of consolidation in the accounting firm expansion, expansion of business scope, the government and the public have become increasingly concerned its audit quality issues. To play a supervisory role accounting firms on the capital markets to ensure that our capital market capable of rapid and healthy development, the level of the accounting firm audit quality is a very important factor.The capital market of China is still not mature, many construction system is not perfect, the presence of corporate earnings management behavior is obvious, however, is bound to objectivity and fairness of the financial information is affected by corporate earnings management behavior, earnings management behavior of enterprises to make financial information to some extent, affected the quality of financial information, reflecting the manager’s subjective will, business owners and investors, decision-making will be seriously misled excess earnings management behavior, thereby corporate investors and even damage the interests of the owner, the healthy development of the securities market will also be affected, therefore, how to suppress earnings management behavior has become a hot topic in the current academic discussion.After extensive empirical research in academia, found by the accounting firm to provide enterprises with the attestation engagement may cause some degree of impact on corporate earnings management. In view of this point, we consider integration of environmental and development status of the market, the impact of the accounting firm audit quality management of corporate earnings do some empirical research and analysis.Firstly, the relevant literatures were reviewed, and the concept of audit quality and earnings management has done a defined, summed up the three audit quality metrics, then on the basis of a combination of strategic management theory, synergy theory and principal-agent theory of the three basic theories on audit quality metrics explained. Then it analyzes the impact of the accounting firm audit quality measure of corporate earnings management, based on this hypothesis put forward three studies: a hypothesis, engaged in professional management accounting firm with respect to the accounting firm engaged in diversification, client companies lower their level of earnings management; hypothesis 2, the larger the size of the accounting firm, the lower the customer’s level of earnings management; hypothesis 3 was issued unqualified opinions issued by the listed company with respect to the Feibiaoyixian listed companies, their lower level of earnings management. After that, the samples were selected by and design model, using the modified Jones model of earnings management level metering, and as explanatory variables for the development of strategic accounting firms, as the size and type of audit opinion explanatory variable multiple linear regression model, empirical analysis, the conclusions of the study: the development strategy of the accounting firm, the size and the type of audit opinion and earnings management level was negatively correlated. Finally, based on the conclusions of the study, for how to improve CPA audit quality to curb corporate earnings management behavior presents policy recommendations and outlook.