How Does Government Auditing Improve Accounting Information Quality?——Evidence from audit adjustments
As an integral component of the Party and the state oversight system,government auditing enhances accounting information quality for state-owned firms,thereby ensuring the security of state-owned assets and providing information references for the decision-making of the Party and the state.This study delves into this issue by utilizing audit adjustment data.Government auditing can affect audit adjustments by increasing audit quality of CPAs and directly improving accounting quality prior to the CPA auditing.Empirical results show that government auditing enhance accounting quality before CPA auditing and reduce the magnitude of audit adjustments to firms'profits.Further investigation reveals that the effect of government auditing on audit adjustments is more significant when audit institutions tighten oversight or firms actively rectify.The findings of this study contribute to the understanding of how government auditing influence accounting information quality and the behaviors of CPAs.
government auditingaudit adjustmentaccounting information quality
NETL
NSTL
万方数据
