Auditor Switch, Government Backing and Audit Quality--An Empirical Test of the Effect of the Strategy of Strengthening CPA Firms
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Abstract The author investigates the effect of the strategy of strengthening CPA firms from the perspective of auditing demand. Based on the analysis of the auditor switches of China’s listed companies, the author finds with the implementation of the strengthening strategy, compared with the non-government-controlledlisted companies, the auditors of government-controlled listed companies changefrom small ones to big ones, but when the auditor switches to a bigger one, theaudit quality is significantly lower than before. As a conclusion, the author believes that the strategy of strengthening CPA firms hasn’t achieved notable result in auditing practice.
WANG En-Shan. Auditor Switch, Government Backing and Audit Quality--An Empirical Test of the Effect of the Strategy of Strengthening CPA Firms. Economic Survey, 2011, 28(1): 079.
2011, Vol. 28 
