Signature-CPA Rotation, Audit Firm Rotation and Audit Negotiation in Capital Markets
Audit negotiation is an influencing factor of audit quality and accounting information quality of capital markets. This paper using Experimental Economics method and negotiation task of assets reported value investigates the impact of signature-CPA rotation and audit firm rotation on audit negotiation. Our results suggest the following: In the institution of audit firm rotation, agreed-upon asset reported-values and rate of agreement between auditors and clients are lower than in the institution of signature-CPA rotation, the results of audit negotiation are more cautious. In the institution of audit firm rotation, the rate of agreement between auditors and clients of the last year is lower than any other year of rotation period. In the institution of audit firm rotation, auditors use Competitive strategy more; in the institution of signature-CPA rotation, auditors use concessive strategy more. The results upon show that, audit firm rotation can improve audit quality and accounting information quality of capital markets more than the current signature-CPA rotation.
signature-CPA rotation audit firm rotation audit negotiation
ZHANG Jixun SUN Peng ZHOU Ran
Business School of Nankai University, Tianjin, China, 300071
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
55-66
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）