Research On The Impact Of Integrated Auditing And Separated Auditing On Audit Quality

Unlike the wave of developments in the United States that require listed companies to conduct integrated audits,China does not explicitly request them.Therefore,there are two different auditing modes:integrated auditing and individual auditing in China.At the same time,China's Ministry of Finance,China Securities Regulatory Commission,the National Audit Office,the China Banking Regulatory Commission,and the China Insurance Regulatory Commission jointly promulgated the "Guidelines for Enterprise Internal Control Auditing"in 2010,and for the first time proposed the concept of"integrated auditing".With the development of internal control auditing,the listed company(main board)was introduced in August 2012.The classification and implementation of the internal control system of enterprises shall clearly stipulate that all A-share main board listed companies shall implement the internal control standard system of the enterprise from 2014,and disclose the internal control self-evaluation report and the internal control audit report.Based on the above research backgrounds,this paper intends to study:Before and after the enforcement of internal control regulations in 2014,the impact of integrated auditing and individual auditing on audit quality is different.The American Center for Auditing Quality(CAQ)(2009)pointed out that integrated auditing can reduce audit costs and improve audit efficiency and quality.When Chinese scholars study the impact of integrated auditing and individual auditing on audit quality,the samples are either taken from the mandatory disclosure stage of the internal control specification or the stage is not based on the enforcement time of the 2014 internal control specification;There is an inconsistency in the conclusions of the study,that is,the integration audit does not cause a reduction in the quality of the audit or the integrated audit significantly improves the quality of the audit.After the mandatory disclosure of the background based on the 2014 internal control regulations,there are fewer literatures for comparative studies of the two phases.Therefore,the research innovation of this paper is that,from the perspective of audit quality,the policy time of enforcing internal control norms in 2014 is the basis for dividing the time,and the sample is divided into two stages:2010-2013 and 2014-2017.At the same time,the PSM method is used to match the samples,and further exploration of whether the internal control specifications are enforced before and after,whether the integrated audit and the separate audit have different effects on the audit quality.The theories to be used in this paper include theories of information asymmetry,synergy theory,knowledge spillover effects,and voluntary information disclosure.The research method to be adopted is a large sample empirical study.The audit model is quantified by cross-section correction of the Jones model,and then tested by the audit quality model to arrive at the final research conclusion.In summary,this paper finds through research that there is no significant difference in audit quality between the integrated audit and the separate audit in the voluntary disclosure phase,whether it is a full sample or a matching sample.However,in the mandatory disclosure phase,the audit quality of the individual audit is better than the integrated audit.At the same time,the results of the extended inspection show that the audit quality in the mandatory disclosure stage is better than the audit quality in the voluntary disclosure stage,indicating that the mandatory implementation of the policy requirements is effective in promoting the improvement of audit quality;the integrated audit can significantly reduce the audit fees.The research value of this paper is to provide more objective and fair conclusions for the theoretical research of different auditing modes.At the same time,it also provides reference for listed companies,accounting firms and government regulatory agencies in auditing practice.Based on the principle of cost-effectiveness,more and more enterprises have begun to choose the audit mode of integrated auditing.Therefore,in the conclusion part of this paper,several suggestions for optimizing integrated auditing are proposed to promote the development of integrated auditing.