Accounting Firm Switches And Audit Quality In National Equities Exchange And Quotations

The market has gotten great concern,and will sufficiently play a fundamental role in the capital market,since the State Council issued another statement to encourage the revolution in the capital market.The accounting firm,as a major participant,issues auditor’s opinion,which is a significant evidence for relevant stakeholders.So the level of audit quality affects the normal running of the capital market.The National Equities Exchange and Quotations(NEEQ)was a "Commissioned Shares Transfer System"of the Zhongguancun Science Park Non-Public Stock-Limited Company once,and now it has grown into a national equities trading platform for the non-public stock-limited companies.The total value of the shares in NEEQ has more than 3 trillions by 30 December,2016.It has become an important part of the capital market.The listing standard is lower and the risk is higher in NEEQ,compared with the Main Board,Small and Medium-Sized Board and the GEM.So the reliability of the audit report in NEEQ is even more crucial.With the disclosure of the first IPO fraud,switching the accounting firm,as a way to obtain clean audit opinion,has gradually attracted more attentions.The research approach and innovative of this essay are made the findings based on the latest data in NEEQ,which fills the blank of the switching accounting firm in this filed.In addition,the switching point in time,one of the variables in this essay,is different from the previous studies.Which could possibly provide a new perspective to get to know the relevant situation in NEEQ.The main findings of this essay are the change in the scale of the accounting firms and the audit quality are correlated significantly.Which means,the company change its audit institution from a larger one to a smaller one,the audit quality will decrease.Moreover,the switching point in time and the audit quality are also closely related.To be specific,the later it switches accounting firm(as the 30 April is the deadline),the poor the audit quality will be.