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 signi...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.展开更多
In terms of accounting, all types of business enterprises regardless of their organizational form are separate accounting entities. But different types of organization forms entail remarkable differences in the establ...In terms of accounting, all types of business enterprises regardless of their organizational form are separate accounting entities. But different types of organization forms entail remarkable differences in the establishments, legal positions, 1iabilities, taxation obligations and accounting practices of the business enterprises as accounting entities. A good knowledge of such difference is beneficial to the promotion of the deveIopment of all types of business enterprises in China.展开更多
基金supported by the National Natural Science Foundation of China under the following grants(No.71302131No.71132004 and No.71172029)+3 种基金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
文摘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.
文摘In terms of accounting, all types of business enterprises regardless of their organizational form are separate accounting entities. But different types of organization forms entail remarkable differences in the establishments, legal positions, 1iabilities, taxation obligations and accounting practices of the business enterprises as accounting entities. A good knowledge of such difference is beneficial to the promotion of the deveIopment of all types of business enterprises in China.
