Audit Quality Study Based On The Point Of View Of Financial Fitness

There have been numerous researches on contemporary corporal financial management.However,most of them are confined to regular financial index calculation and analysis,studies that are categorical and systematic are very rare and they often fail to reveal the connection to audit quality.This study is intended to categorize the financial indexes and analyze the connection between corporal financial fitness and audit quality at a synthetic angle,thus fitting in the blanks of Tab.er theoretical studies,meanwhile conducting the auditors to improve the audit quality.This study tries to build a systematic combination of financial indexes reflecting aspects of corporal profit fitness,corporal assets and liabilities fitness,corporal cash flow fitness and the three different factors combined.By studying the respective relationship with audit quality,this study intends to reveal the influence of financial fitness of corporations on audit quality in a systematic way.This study has a sample which contains 220 groups of data from 44 companies listed in Shanghai stock exchange and Shenzhen stock exchange.Binary logistic regression analysis method is put into use to identify the most significant factors from the four pre-set financial angles,thus judging their financial significance.The empirical research's results are as follows.(1)Corporal profit fitness bears a negative relationship with audit quality.(2)Corporal assets and liabilities fitness bears a negative relationship with audit quality.(3)Corporal cash flow fitness bears a negative relationship with audit quality.(4)It cannot be proven that the three financial fitness aspects integrated have a negative relationship with audit quality.(5)The higher the ratio of the independent board member in the board,the more likely it is for the company to receive non-standard audit opinion,thus rendering a relatively higher audit quality.(6)The more likely it is one of the domestic big-ten accounting firms to undertake the audit,the possibility of giving out a non-standard audit opinion would be higher,thus leading to a relatively higher audit quality.(7)Of all the control variables,the function of board number,accounting firm term handover or company asset scale cannot be manifested in this study.