An Empirical Study Of Integrated Audit Influence On Real Earnings Management

Many financial fraud incidents occurred in recent years, which idicated that there were many problems like as information disclosure is not standardized, internal control system is not perfect and other problems in internal control. So that the majority of listed companies and investors began to question financial statements audit.Internal control audit is very necessary for the perfection of internal controls,the integration of Internal control audit and financial statements audit is critical to the reliability of financial information will be,and the financial information is the important basis for the majority of investors in listed companies determine. Therefore, in order to enhance the confidence of the majority of investors in listed companies,The integration of financial statements aduit and internal control audit becomes particularly important.The US Public Company Accounting Oversight Board(PCAOB) released Auditing Standard No. 5(AS5) in 2007,which in order to constantly improve the law about internal control of the listed company.AS5 requires external auditors to using the top-down risk-based audit approach in performing internal control audits, and this is the first time that the concept of integrated audit mention in the law, it means that financial statements auditing and internal control audit performed simultaneously by a accounting firm. In 2008, China promulgate the "Internal Control Standards". In 2010, China's five ministries jointly promulgate the relevantly supporting guidelines, and released the "Internal Control Audit Guidelines" in April, and mention integrated audit in the guidelines. Thus,the stand-setters more attent integrated audit. Before the research of integrated audit usually stay in normative research, it researching the feasibility and necessity of integrated audit, and how effective implement integrated audit, how seldom scholars to testing the effect of the implementation of integrated audit in practice, and has not been consistent in conclusion. With the gorvenment departments to strengthen supervision of listed companies,the listed companies began to making more real business activities to meet the requirements for profit, the China scholars proceed research about real earnings management wihch mostly from the persoective of the listed companies' s characteristics, how seldom scholars' s based on the perspective of external governance. So we will procee empirical research about real earnings management from a new model of integrated audit, and in order to testing integrated audit governance effects.This text will make the listed companies of Shanghai and Shenzhen A-share as samples from 2012 to 2014, choosing the company that proceed internal control audit, and we will divide the samples into that the implementation of integrated audit and implementation of non-integrated audit, researching integrated audit effect on real earnings management, and further analysis that integrated audit effect on real earnings management whether is the same in the different nature of the property. We find that:(1) With respect to the non-integrated audit, the integrated audit more significant inhibit real earnings management;(2)Integrated audit has a significant inhibitory effect on non-state-owned listed company's real earnings management,but it has' t significant inhibitory effect on state-owned listed company's real earnings management. Finally, make recommendations:the listed company should improve its internal control system, to respond positively to the call of goverment that implementating integrated audit; accounting firm should improve professional competence, providing a powerful guarantee for the implementation of integrated audit;regulatory goverment should urge listed companies to implementating integrated audit, in order to improve the quality of earnings.