The Empirical Study Of The Correlation Between Integrated Auditing And Earning Quality

The financial fraud scandals of large-scale listed companies such as Enron and World Communications have occurred one after another.Their fraudulent practices have become more and more concealed,and successive scandals have attracted worldwide attention.The continuously exposed frauds have severely reduced the credibility of the capital market,which has affected the confidence of investors and has infringed the interests of the general public.In the above cases,it is not difficult for us to find that the internal control system plays an indispensable role in preventing financial scandals.Internal control auditing is an essential step in improving the internal control system.In order to improve the internal control system and enhance the authenticity and reliability of financial reporting information,Sex,the need to integrate internal control auditing and financial reporting and auditing is the implementation of integrated audit.Integrated auditing is in full swing at home and abroad.In practice,more companies choose to integrate auditing.We cannot help wondering how effective the implementation of integrated auditing is.What is the role of the listed company's earnings quality? With these issues,we reviewed the domestic and foreign literature first,and found that most of the literature in the academic world is qualitative research on integrated audit,focusing on the necessity and feasibility of integrating audit implementation,and a few scholars on integrating audit and audit fees,audit quality,etc.Positive empirical tests have been conducted but the conclusions are inconsistent.Afterwards,the innovations of this paper are listed:(1)This article examines the effectiveness of integrated auditing from a new perspective of earnings quality.This article improves the empirical research content of integrated auditing and earnings quality.(2)Breaking the internal characteristics of listed companies such as industry and equity concentration to study the quality of earnings.This article examines the quality of earnings from the perspective of external auditing.(3)This paper attempts to study the integration audit from the perspective of different corporate nature.Finally,it defines the integration audit and the quality of earnings.It uses the theory of fiduciary economic responsibility,knowledge spillover theory,and systemcoordination theory to analyze and integrate audits.Based on the above theoretical analysis,this article uses empirical research methods to select 2013-2016 listed companies on the Shanghai and Shanghai Main Boards as research samples,empirically examines the correlation between the integration audit and earnings quality,and further analyzes the integration of different types of equity.The effect of the audit on the quality of earnings.The study found that:(1)Compared to the implementation of separate audits,the implementation of integrated audit can significantly improve the quality of earnings;(2)Compared with state-owned enterprises,non-state-owned enterprises perform integrated audits to improve the quality of earnings.