The Contagion Effect Of Low Audit Quality Among Tainted Auditors

The audit report issued by the firm is of great significance to the audited unit and the intended users,and whether the audit report is reliable and can help users make correct decisions depends largely on the quality of the audit.In recent years,the audited company's financial statements still appear to be fraudulent,which makes the public doubt the professional competence of auditors and makes people wonder why low audit quality occurs so frequently.An important determinant of audit quality is the individual auditor.The punished tainted auditor may transmit low audit quality to other auditors who cooperate with it in daily work,resulting in a decline in the overall audit quality.Therefore,research on tainted audit It is necessary to have a low audit quality contagion effect of cooperation in the institute.This article mainly adopts the case study method,and selects Ruihua Certified Public Accountants,which has been punished frequently in recent years,and studies them.By sorting out the tainted auditors who have been punished,selecting the auditors who have worked with it and quantifying their audit quality,verifying whether there is a contagious effect of low audit quality in Ruihua Institute through empirical research,and further The situation of the firm will be used to study the propagation path,causes and subsequent effects of contagious effects,and finally make suggestions on how to improve the quality of audits and suppress the contagious effects of low audit quality.The main research direction of this article is the low audit quality contagion effect at the level of individual auditors rather than the overall level of the firm.The contagion effect is analyzed from a more micro perspective.In addition,empirical analysis methods have been mostly used in previous literatures for research.This article will use case studies to hope to focus more on the contagious effects.