An Empirical Study Of The Economic Cycle On The CPA Audit Quality Impacts

The level of audit quality has been a hot issue of wide public concern, as China's economic growth from the rapid growth into a high-speed growth, the economy has entered a new normal production and operation of enterprises are facing the pressure is gradually increased. Plus the number of audits of financial fraud on the market increasing, the public market is difficult to judge the level of audit quality. China's economy and greater downward pressure on the market is difficult to determine the quality of the audit, resulting in the public's enthusiasm for investment is declining, which is not conducive to China's economic development. However, research on audit quality, the domestic researchers usually from the micro aspects of research on audit quality, but little research on audit quality from a macroeconomic impact. In order to determine the impact of macroeconomic audit quality and whether there is a correlation between the two, this article from the perspective of the economic cycle research CPA audit quality in China.Firstly, the macroeconomic impact of the audit, the audit quality proxy variables for both domestic and international literature review, through the agency theory and asymmetric information theory describes the relationship between the economic cycle and the CPA audit quality. By reading literature at home and abroad, with real GDP growth is selected to define the relevant stage of the economic cycle, and to select the type of audit opinion and earnings management as a surrogate for audit quality, for China 2004--2013 economic cycle fluctuation and Listed Companies audit quality descriptive analysis, the relationship between the preliminary draw. In our 2004-2013 A-share listed company's data for the study, the use of dummy variables to measure the economic cycle, to discretionary accruals as a proxy for audit quality and control including company size, profitability, company whether the loss, the impact of the company's asset-liability ratio, firm size and other variables on the company discretionary accruals, the establishment of the economic cycle CPA audit quality impact of multiple regression model. By multivariate regression analysis corresponding conclusion: Compared to economic expansion, economic contraction in China's listed companies conducted discretionary accruals to increase the possibility of profits, the lower the quality of the audit market. Finally, according to the results of multiple regression analysis, further analysis of the impact of the different stages of economic development for the CPA audit quality, and for the user information on how to utilize the information given in the corresponding recommendations.