Auditing standards for chinese certified public accountants là gì năm 2024

We gratefully acknowledge helpful comments from Michael Willenborg (editor), two anonymous reviewers, Sanjeev Bhojraj, Lawrence Brown, Jenna Burke, Simon Dekeyser, Richard Frankel, Ryan Guggenmos, Like Jiang, Andrew Karolyi, Jeong-Bon Kim, Seil Kim, Alona Kolomiiets, Clive Lennox, Chen Li, Robert Libby, Xiumin Martin, Vic Naiker, Randy Priem, James Ryans, Lakshmanan Shivakumar, Christophe Van Linden, Wei Wang, Donghui Wu, Kaiwen Wu, Xi Wu, Qingquan Xin, Xing Yang, Eric Yeung, Jieying Zhang, and Liandong Zhang, as well as participants at various seminars and conferences. We thank Weihang Wang and Xiangfang Zhao for outstanding research assistance. Xianjie He acknowledges financial support from the National Natural Science Foundation of China (No. 91746117; No. 71632006; No. 72032003), the MOE Project of Key Research Institute of Humanities and Social Sciences at Universities (No. 18JJD790010), and the Program for Innovative Research Team of SHUFE. S. P. Kothari acknowledges financial support from the MIT Sloan School of Management. Tusheng Xiao acknowledges financial support from the Program for Innovation Research and China's Management Accounting Research and Development Center in Central University of Finance and Economics. Luo Zuo acknowledges financial support from the Cornell SC Johnson College of Business and the University of Toronto Roger Martin Award for Emerging Leaders.

Xianjie He, Shanghai University of Finance and Economics, School of Accountancy, Shanghai, China; S. P. Kothari, Massachusetts Institute of Technology, Sloan School of Management, Cambridge, MA, USA; Tusheng Xiao, Central University of Finance and Economics, School of Accountancy, Beijing, China; Luo Zuo, Cornell University, SC Johnson College of Business, Ithaca, NY, USA.

Supplemental materials can be accessed by clicking the links in Appendix C.

Editor's note: Accepted by Michael Willenborg, under the Senior Editorship of Mary E. Barth.

Received: November 01 2018

Accepted: June 01 2021

Online ISSN: 1558-7967

Print ISSN: 0001-4826

The Accounting Review (2022) 97 (3): 249–277.

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ABSTRACT

Using a difference-in-differences approach, we examine the effect of industry-specific knowledge transfer on audit performance after a merger of two Chinese audit firms with different levels of expertise in an industry. For clients in an industry audited by both merging audit firms, those audited by the audit firm less specialized in that industry belong to the treatment group, while all other clients belong to the control group. We find an economically significant improvement in audit quality (as reflected in a reduction in financial misstatements) for the treatment group relative to the control group in the same merged audit firm. We show the treatment effect is not driven by changes in auditor incentives or personnel movement and is more pronounced when we expect stronger communication between the less and more specialized auditors after the merger. We caution that our findings are specific to China and may not generalize to other countries.

We are pleased and greatly honored to be here today as the Ministry of Finance of the People's Republic of China and the Chinese Institute of Certified Public Accountants announce their intention to converge Chinese auditing standards with International Standards on Auditing. Your enormous achievements to date in strengthening the Chinese accountancy profession through convergence towards international standards should not be viewed as an isolated event. It is significant and fundamental to the further development of your country's capital markets and is, I believe, fully consistent with the reforms the People's Republic of China has advanced in the last decade.

The reforms, including opening your door to increased trade, authorizing the private ownership of business entities, and encouraging foreign direct investment by the establishment of free enterprise zones in coastal regions, have enhanced your country's role and reputation in the global markets. Adhering to high-quality auditing standards is another way to strengthen your financial architecture and confidence in your capital markets.