A Study on CPA Team Sharing and Risk Spillover Effect
SUN Longyuan1, LI Xiaohui2, ZHANG Qi2,JIANG Yahan3
1.School of Information Management, Beijing University of Information Technology, Beijing, 100010; China; 2.School of Accounting, Central University of Finance and Economics, Beijing, 100081, China; 3.School of Management, Minzu University of China, Beijing, 100081,China
Abstract Taking the A+H-share listed companies with key audit items reports issued in 2016-2019 and other companies employing the same CPA team in the same firm as samples, this paper uses comparative analysis to study the impact of CPA reports on litigation risks and audit fees and the “risk spillover” effect of “CPA team sharing”. The results show that the issuance of reports on key audit items will increase the audit work input and litigation risk of CPA and increase audit fees, while CPA team sharing will produce risk spillover effect which will make the audit risk spread to to other companies undertaken by the certain CPA . In order to deal with this effect, CPA should increase the work input to improve the business quality and increase audit fees for these companies. The further research shows that the improvement of professional ability of CPA can weaken the “risk spillover ” effect.
2021, Vol. 38 
