Institutional Environment、Auditor’s Individual Characteristicsand Audit Quality

It is well known that audit quality is of great importance to capital market.It is the highest standard of measuring audit work,is the determining factor that makes the audit play a supervisory role,is the basic criterion for investors to make investment decisions,is the lifeblood of audit work and even capital market operation.As a result,the research on the influencing factors of audit quality has always been a hot topic in the field of auditing.The research process of audit quality influencing factors has experienced a path from large to small,from shallow to deep,from the top to the bottom,and has been advanced to the perspective of individual heterogeneity of signed CPA.However,at present,most studies only take into account the relationship between the auditor’s individual and the audit quality,and there are few academic achievements related to the influence of external environmental factors on the relationship between the two.But,China is still in the economic transition period,and local governments still play an important role in the local market economy.In addition,the geographical location and resource endowment of provinces and cities in China make the politics,economy,law and culture differences in different regions.In this case,it has very important practical significance to research the influence of institutional environment on the relationship of CPA’s individual heterogeneity and audit quality.Based on the above background,this paper studies the relationship between institutional environment,signature CPA’s personal characteristics and audit quality through normative analysis and empirical analysis.In normative analysis,firstly,to look for the breakthrough point in the field,this paper reviews the related research results at home and abroad from three aspects which are the measurement of audit quality,the factors influencing the audit quality,and the relationship of the personal characteristics of CPA and audit quality.Secondly,this paper summarizes the theoretical basis related to the research topic in this paper,including upper echelons theory,"deep pocket" theory and system theory.Thirdly,under the guidance of the above theories,this paper deeply analyzes the mechanism that the institutional background will affect the relationship between CPA’s personal characteristics and audit quality,and then proposes two main hypotheses which contain the gender,age,degree,profession and position of the CPA will affect the audit quality,and the above characteristics have a more significant impact on audit quality in the better institutional background.In the empirical analysis,this paper takes the financial data of a-share listed companies listed in Shanghai and Shenzhen and the signed CPA of the audit report during the period from 2013 to 2015 as the research samples,constructs a multivariate regression model withmany control variables,tests the research hypothesis empirically.At last,on the basis of the conclusion,the robustness of the conclusion is tested from three aspects.Conclusion:(1)The signed CPAs who are male,older,highly educated,non-relevant majors,and partners have higher audit quality.(2)The institutional environment will influence the relationship between the personal characteristics and audit quality.And it has a feature which is the better the institutional environment,the more significant the influence of the personal characteristics of the signed CPA on audit quality.(3)When the institutional environment is good,the impact of institutional background on the relationship between personal characteristics and audit quality is basically the same in the location of the auditing offices and the listed companies.On the basis of the research conclusions,in order to encourage the auditing firm to strengthen its human resource allocation,improve audit quality and enhance its competitiveness,and promote healthy competition in the audit market,this paper puts forward the policy suggestions from the perspective of perfecting the external system environment,paying attention to the training and selection of CPAs and strengthening the internal governance of the firm.At the end of the paper,the future research direction is proposed according to the lack of research,so as to provide new ideas for the research of related problems in this field.