The Impact Of China's Audit Market Concentration On Audit Quality

In recent years,the research on the impact of the audit market concentration on the audit quality is quite abundant,and the research conclusion is quite different.At present,how to adjust the audit market concentration to adapt to the healthy development of the audit market has become the focus of public attention.Therefore,in order to provide theoretical support for the corresponding policies introduced by the government and industry associations,it is necessary to study the relationship between the concentration of auditing market and the quality of auditing.This paper chooses the data of Shanghai and Shenzhen listed companies from 2013 to 2015 to study the impact of audit market concentration on audit quality in China.It is concluded that China belongs to monopolistic competitive market,audit quality and audit market concentration are inverted in conclusion.This paper first elaborates the domestic and foreign literatures on the relationship between audit quality and audit market concentration,and analyzes the present situation of audit market in China.On the basis of this,the author puts forward that the audit quality is improved with the increase of the market share of the accounting firm,and the relationship between the audit quality and the market concentration is inverted U-shaped quadratic function Two assumptions.Secondly,the proportion of the non-standard audit opinion report issued by the certified public accountant is chosen as the explanatory variable,and the market share of the accounting firm that issued the audit opinion report is chosen as the explanatory variable.At the same time,the audit fee is used instead of the explanatory variable Sexual testing,building a theoretical model to validate the above assumptions.Finally,on the basis of the previous four chapters,it is proposed to promote the audit quality of our country,which has a good reference value for promoting the relevant policies of the state and relevant policy makers to improve the audit quality of our country.In this paper,due to the choice of data limited to listed companies,whether there is a high applicability for the entire audit market remains to be further studied.