Research On The Influencing Factors Of Auditor Style Of Chinese Accounting Firms

According to the existing research,accounting firms have gradually formed their own unique styles in the long-term audit practice.Francis et al.(2014)proposed the term "auditor style" and found that the auditor style of the Big Four accounting firms affects the comparability of reported earnings,ie financial accounting between companies audited by the same accounting firm.The information is more comparable,so the auditor style is defined as a unique working standard within the accounting firm.This paper refers to the research on auditor style in domestic and foreign literatures,and defines "auditor style" as:due to the accumulated experience of accounting firms' annual audit work,the audit work has been developed into a working standard for the system that auditors can learn and use.Standards can make financial reports audited with higher accounting information comparability,thus showing a stable and unique auditor style.Referring to Francis et al.(2014),this paper pairs the accrued profits of listed companies in the same industry audited by the same accounting firm in a certain year,using the matching company's accrued profits in the same fiscal year."Similarity" replaces the comparability of its accounting information.After pairing,a series of calculations are performed corresponding to the profit,and finally the auditor style of each firm in each industry can be obtained every year.According to the "Top 100 Accounting Firms' Annual Business Income" published by the Chinese Institute of Certified Public Accountants,this paper divides the firm into four international,top ten domestic and non-large-scale domestic three-class firms,and the calculated auditor style is from three.The descriptive statistical analysis of the dimensions makes it possible to have a preliminary understanding of the auditor style of domestic firms in an intuitive,comprehensive and three-dimensional manner.The preliminary results obtained from the preliminary analysis are:1.The four maj or auditor styles are stronger than the top ten and the top ten are stronger than the non-large firms.The international four have already shown a more stable auditor style;2.The audit of large domestic firms The style is close to the international four majors every year.For example,in the industrial industry,the top ten auditor styles in China have been strengthened year by year,and since 2013,the international four majors have been turned over.This shows that the auditor styles of a few domestic large-scale firms in certain industries have reached or exceeded.4.The listed company's industry has an impact on the auditor style of the firm,or it can be said that the auditor style is not only related to some characteristics of the firm itself,but also certain characteristics of the listed company audited may affect the firm.Auditor style.This paper examines the results of descriptive statistics by an independent sample T test.Based on the above analysis,and referring to the research literature on auditor style,the influencing factors of accounting firms and listed companies are selected to study the impact on the auditor style of accounting firms.The first is the influencing factors of the firm:the firm's ranking on behalf of the firm's reputation,the firm's business income representing the firm's size,the number of accountants and the average teacher's income,and the second is the listed company's influencing factors:it reflects the auditor's workload and efforts.The degree of audit fees,the total amount of assets representing the complexity of the audit business,and the ratio of inventory to total assets,asset-liability ratio,and return on assets are selected as control variables,while controlling the year and type of firm and the loss of listed companies.This paper mainly chooses a model to study the auditor style,and in order to avoid the multi-collinearity effect of the firm's business income,the number of CPAs and the number of teachers,it is regressed separately to study the impact of various influencing factors on the auditor style.The empirical results show that the reputation of the firm and the size of the firm and the audit fees reflecting the auditor's efforts are directly proportional to the strength of the auditor style.The total assets of the listed companies representing the complexity of the audit business are inversely related to the strength of the auditor style.At the same time,in order to verify the multicollinearity and model stability of the data,the multi-collinearity test and robustness test were carried out at the end of the empirical analysis.The results show that there is no multicollinearity between the variables,and the model also passes the stability test.Through the above analysis,the significance of this paper is reflected in the comprehensive descriptive analysis and discussion of the auditor style of China's accounting firms from the perspective of intuitive,and on this basis,select the two factors of the firm and the listed company.Explore the factors and directions that may affect the auditor style.It is found that although the top ten and non-large-scale firms in China generally have gaps with the international four maj or auditing styles,they are generally approaching year by year,and even in some industries,they are stronger than the four maj or auditing styles;this paper further analyzes the impact of auditing.The style factor leads to the conclusion that the factors affecting the auditor style are not only affected by the firm's reputation and firm size,but also by the auditor's efforts,and by the complexity of the audit business.These will provide certain ideas for the development of accounting firms in China,and provide some reference for how listed companies choose auditor firms.