A Study On The Damage Of Auditor Reputation

Certified Public Accountant(CPA)plays an important role in the maintenance of public interest and market order.Due to the fixed mode of audit report,it is very difficult for our country to identify the audit quality of certified public accountants and accounting firms.In the mature capital market,auditor reputation as a signal can be transmitted to investors,auditor reputation once damaged,will lose the trust of investors,which leads to reduction of audit fees,audit market share.The auditor reputation damage is usually caused by the audit failure of the accounting firm or the accounting firm's administrative penalty.However,from the present situation of the construction of auditor reputation,the market does not pay enough attention to the public damage auditor reputation in our country are not perfect,the reputation rating and transfer mechanism,government supervision is not enough.Therefore,the auditor's reputation has not been punished enough.Therefore,this paper studies the problem of auditor reputation damage.Firstly,it reviews the basic theories of auditor reputation,signaling theory,game theory and so on.Secondly,it analyzes the current situation of the auditor reputation damage and finds out the reasons.Thirdly,the paper puts forward some countermeasures to prevent the auditor reputation from being damaged.Finally,this paper selects China's securities market has failed Xinghua certified public accountants audit Bo Yuan investment attention in the case to analyze the process of Bo Yuan investment in the market for delisting,the public audit unit in Xinghua accountant's audit reputation is enough attention,and the change of audit fees and audit of market share.It is hoped that this study can help Chinese accounting firms to pay more attention to the role of reputation,increase investment in the reputation of auditors,and give full play to the role of audit supervision and management.