The Impact of Auditor Quality on Audit Quality —— Evidence from China Based on Data from 2014-2016

Abstract

This paper studies the impact of auditors’ own quality on audit quality. Through the test of relevant models, it is necessary to find out whether the conclusions of predecessors have practical significance in improving the quality of auditing as time goes by and other relevant influencing factors of the market. The paper collects relevant data from multiple dimensions such as the age level of the auditors, the accumulation of audit experience, and the level of education by collecting the relevant data of the 2016 A-share listed companies and the top 100 CPA firms in 2014-2016. An empirical test was conducted. According to the results of the empirical test, the discussion and research will be carried out, and further opinions and suggestions on how to improve the quality of the auditor should be put forward. The innovation of the research is that the level of earnings management is used as a measure of audit quality, and non-recurring gains and losses are used as explanatory variables. On the basis of previous studies, time and environmental institutional variables were further introduced for further verification.