Accounting Firms Evaluation Reform and Auditor Response
The reformulation of the Comprehensive Evaluation and Ranking Measures for Accounting Firms provides a good opportunity to study how accounting firms that have been punished can cope with challenges and spontaneously improve audit quality.This paper utilizes the external impact of the Comprehensive Evaluation and Ranking Measures for Accounting Firms to examine whether the reform of accounting firm evaluation would promote accounting firms that have previously been punished to adopt proactive response strategies by using data of A-share listed companies from 2017 to 2022 as samples.We find that accounting firms that have been punished can reduce the pressure of excessive workload on auditors to improve audit quality.The above conclusion is still valid after a series of robustness tests.Specifically,accounting firms that have been punished are more likely to reduce the pressure of excessive workload on auditors by increasing human capital investment and optimizing human capital allocation.Through heterogeneity testing,we find that when auditors lack industry expertise,the stability of the audit team is low,and the reputation of the firm is good,the impact of accounting firm evaluation reform on audit excess work pressure is more significant.This paper enriches the researches on the transformation of accounting firm evaluation and auditor response,which is of great significance for improving audit resource allocation and driving high-quality development of accounting firms.
accounting firms evaluation reformauditor responseauditors'excessive work pressureaudit quality
万方数据
维普
