摘要
In this study,we examine the effects of the transformation of accounting firms’organizational form on audit quality.We find that the transformation from limited liability to limited liability partnerships has a significant negative effect on the absolute value of discretionary accruals of audited companies.In particular,the transformation has a significant negative effect on positive discretionary accruals and no effect on negative discretionary accruals.We also find that CPAs are more likely to issue modified audit opinions in the year after the transformation,and that there is no evidence that accounting firm size and listed company ownership influence the relationship between the transformation and audit quality.Our conclusions provide empirical evidence for policy makers and enrich the literature on accounting firms’organizational forms.
In this study,we examine the effects of the transformation of accounting firms’organizational form on audit quality.We find that the transformation from limited liability to limited liability partnerships has a significant negative effect on the absolute value of discretionary accruals of audited companies.In particular,the transformation has a significant negative effect on positive discretionary accruals and no effect on negative discretionary accruals.We also find that CPAs are more likely to issue modified audit opinions in the year after the transformation,and that there is no evidence that accounting firm size and listed company ownership influence the relationship between the transformation and audit quality.Our conclusions provide empirical evidence for policy makers and enrich the literature on accounting firms’organizational forms.
基金
supported by the National Natural Science Foundation of China under the following grants(No.71302131
No.71132004 and No.71172029)
the MOE Project of Humanities and Social Sciences(13YJC630160)
the Beijing Municipal Commission of Education"Joint Construction Project"and"Pilot Reform of Accounting Discipline Clustering"
the Youth Innovation Team Support Plan of Central University of Finance and Economics(research direction:Empirical Accounting and Auditing)
the"2011 Synergetic Innovation"Key Project on"Development of Public Accounting Profession"for the Central University of Finance and Economics,China
