Study On The Impact Of CPA Rotation On Audit Quality

The audit quality is an important standard to measure the quality of the audit report,and the audit report will eventually be used by multiple stakeholders,the quality of the audit report is closely related to their interests,therefore,to improve the audit quality is an inevitable requirement.However,in recent years,for the sake of their own development,enterprises cooperate with accounting firms to issue untrue audit reports frequently.For report users,false audit reports will harm their own interests,and for the general public,the frequent occurrence of such incidents will harm the positive impact of audit work.In order to promote the soul of audit--that is,the independence of audit and to improve the quality of audit,our country issues relevant regulations on the rotation of signed certified public accountants.Further research is needed on whether the specific implementation of the policy can exert certain positive influence and ultimately improve the audit quality.For the above reasons,this paper will focus on the impact of CPA rotation on audit quality.Based on the case of Dongxu,this paper analyzes the reasons for rotation and the possible negative impact of rotation.By comparing the audit quality before and after the rotation of a single signature CPA,it explores whether the rotation system can improve the audit quality.In this paper,four measurement indicators are used respectively for analysis.Finally,comprehensive indicators are used to calculate the score.It is found that the audit quality is improved after the rotation.At the same time,it is also found that in the two years after the replacement,the earnings management level of enterprises increased,which needs to be paid attention to.The main contribution of this paper: At present,most of the researches on the rotation of signed CPA in the academic circle adopt the empirical method.Among them,different scholars have different research results on the impact of rotation on audit quality.Some studies mainly discuss the impact of signature CPA’s personal characteristics on audit quality.Relevant research is worth further exploration.This paper chooses Dongxu Company for case analysis,taking the rotation of a single signed CPA as the research node,to study whether the rotation can improve the audit quality.Finally,according to the results of the research,the author puts forward some corresponding suggestions,hoping to be helpful to the further improvement of the system.In the theoretical sense,it broadens the research perspective on the rotation of CPA and enriches the relevant literature.In a practical sense,it provides some suggestions for improving the audit quality,and improves the credibility and accuracy of audit reports.