JSS  Vol.3 No.11 , November 2015
Case Studies of Local CPA Firms’ Audit Quality
Author(s) Jiexiao Shan*
ABSTRACT
Using two state-owned enterprises’ financial fraud cases, Nanjing Zhongbei Group Co., Ltd. and Nanjing Textiles Import & Export Corp., Ltd., which were audited by the same local CPA firm, we found that the auditors of the two companies were almost the same and the fraud time of the two companies was close. We further analyze the reasons why the CPA firm still issues standard opinions for such fraud and “sick” auditors violate again. Finally, we propose some policy suggestions.

Cite this paper
Shan, J. (2015) Case Studies of Local CPA Firms’ Audit Quality. Open Journal of Social Sciences, 3, 128-133. doi: 10.4236/jss.2015.311016.
References
[1]   Lennox, C. (2005) Audit Quality and Executive Officers’ Affiliations with CPA Firms. Journal of Accounting and Economics, 39, 201-231. http://dx.doi.org/10.1016/j.jacceco.2003.12.002

[2]   Wang, Q., Wong, T.J. and Xia, L. (2008) State Ownership, the Institutional Environment, and Auditor Choice. Journal of Accounting and Economics, 46, 112-134. http://dx.doi.org/10.1016/j.jacceco.2008.04.001

[3]   Chen, J.K. and Chen, H.W. (2009) Company Characters, Audit Demand and Factors Driving Local Accounting Firm Selection. The Theory and Practise of Finance and Economic, 30, 62-66.

[4]   Du, X.Q., Zhou, Z.J. and Du, Y.J. (2011) Political Connections, Regional Preference of Audit Choice and Audit Opinions. Auditing Research, 2, 78-86.

 
 
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