A Study Of Auditor Reputation Judgment

The history of development of modern auditing profession is no more than thirty years in our country, but the development is rapid compared with Wester n countries. Since our country restored the CPA system, the audit industry deve loped rapidly. At the same time, rapid development has also brought many seri ous problems. Fraud audit make user doubt the audit report. And the reputation of accounting firms is in danger of collapse. Therefore, it's meaningful to red eem auditors'reputation by finding an indicator to measure the auditors'reputat ion and establishing a reasonable reputation evaluation mechanism of accountin g firms.According to international auditing standards, auditors include project partn ers and accounting firms. This paper studies the reputation of auditors from pe rspective of accounting firm. To establish reasonable reputation evaluation mech anism, we must find an indicator to measure the auditors' reputation firstly. Th e paper found the nature of the auditor's reputation is the auditor's ability to p erform the contract from the derivation of contract theory and the formation m echanism of auditor reputation after reading a lot of relevant literature. The ess ence of performance capital include reputation capital and physical capital of a uditors. It is necessary to know the factors that can influence auditors'reputati on factors influencing auditor reputation to establish a reasonable auditor reputa tion evaluation system.This paper argues that we could analysis factors influencing auditor reputat ion from reputation capital and physical capital. The paper establish the reason able auditor reputation evaluation system including three first grade indicators a nd nine second grade indicators combined with "comprehensive evaluation appr oach of accounting firms" issued by the AICPA from the perspective of accoun ting firms. The paper used factor analysis method to analyze the data and verif y the reasonableness of auditor reputation evaluation mechanism, then put forw ard suggestions of classified supervision.