The Impact Of The Degree Of Radicalization Of Corporate Strategy On CPA Audit

With the separation of management rights and ownership of the company,the owner gradually delegates management power of the company's various operating activities to the operator,who is responsible for the operation and management of the company.In order to reflect its financial status,operating results and cash flow,the operator needs to regularly provide the owner with its prepared financial statements.Because of the inconsistent interests of both parties and the asymmetric information,operators may use the advantage of information to provide false information.Therefore,it is of great significance to hire an independent third party for auditing.The CPA system emerged as the times require.The financial statement audit report provided by the certified public accountant is a guarantee for the quality of the company's financial information.From the selection of the firm,to the certified public accountant to express the audit opinion,and to collect the audit fees,it is a very important part of the audit of the certified public accountant.Therefore,the choice of accounting firms,audit opinions and audit fees have become a hot topic in academic circles at home and abroad.Corporate strategy is the direction of the company's development,determines the company's rise and fall,only under the guidance of the correct strategy,managers can achieve the company's value maximization based on the company strategy.In 2004,the COSO Committee discovered the importance of the company's strategy in risk management.In September,the COSO committee formally released the Enterprise Risk Management-Integrated Framework(ERM Framework),which changed the three goals of internal control to four goals and added strategies.Goal and put it first.In the current risk-oriented audit model,understanding and testing of company strategies has also received increasing attention,and it has a very important impact on CPA audits.In addition,companies with more aggressive strategies tend to expand the company's scale in the course of business operations.The company's management cannot match the pace of development,and it is prone to financial fraud and business risks.Then,when choosing a firm of accounting firms,is there a case where the owner of a listed company chooses toprovide a high-quality audit service firm in order to obtain more reliable financial statements? Whether there is a company adopting a radical company strategy has increased the audit risk and increased the workload of the audit.As a result,the CPA has issued non-standard audit opinions and increased audit fees.In view of the above issues,this paper selects 3039 manufacturing listed companies from 2014 to 2016 to sample and analyzes the impact of strategic aggressiveness on the company's selection of firms,audit opinions,and audit costs.It is found that:(1)The company's aggressive strategy With a significant positive correlation with firm selection,the more radical corporate strategy is,the more companies tend to choose firms that can provide high-quality audit services.(2)The company's strategic aggressiveness is significantly and positively correlated with the audit opinion.That is,the more radical corporate strategy,the more likely the certified public accountant will issue non-standard audit opinions.(3)The company's strategic aggressiveness is significantly positively correlated with the auditing costs.That is,the more radical the company's strategy in its operating activities,the higher the auditing costs.