Research On The Impact Of Clarification Announcement Of Listed Company On Audit Quality

The clarification announcement is a statement made by board of directors in order to prevent misleading information affect the stock price,as a respond to public media rumor after being inspected by Stock Exchange.The existing research focused on the clarification announcement's effect to securities market from the perspective of finance and management,while the affect on audit quality of certified public accountant rarely be paid attention to.The clarification announcement is published by board of directors,which should be observed and inspected by CPA during the process of identifying and assessing the risk of material misstatement.So the topic of whether clarification announcement affect audit quality,how to affect audit quality should be focused.On the basis of literature review,the research tend to explain the relationship between clarification announcement and audit quality with the theory of modern risk oriented audit,public pressure theory,signaling theory and deep purse theory.Under the premise that public pressure reduces conspire,audit quality is measured by audit fee and audit opinion to examine whether clarification announcement affect audit quality using the data by listed companies from 2014 to 2016.The result is that audit quality of companies which issue clarification announcement is higher than not issued ones;audit quality of companies which issue clarification announcement in several years is higher than the companies only issued one year.There is no evidence of timeliness affect the audit quality,while the accuracy of expression in clarification have an obvious effect on audit quality with the adjustment by reputation.The research came to a conclusion that clarification announcement have a positive effect on audit quality via its system and feature.Finally relative advice such as guiding CPA paying attention to clarification announcement,building the reputation of accounting firm,standardizing the information disclosure of listed company and emphasizing the regulation of clarification announcement quality.