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 AJIBM  Vol.8 No.4 , April 2018
Research on the Impact of Entity’s “Non-Professional Business” on Audit Quality
Abstract: Driven by the excess return rate, the entity financial trends are becoming more and more intense, which the entity enterprise carrying out financial and real estate business are often advertised as work outside. In order to explore whether entitys Non-professional Business can influence the audit quality or not, this paper takes A shares in the two stock markets of Shanghai and Shenzhen between 2007 and 2016 as a sample to find out their relationship. Entitys Non-professional Business can be divided into direct and indirect entry way. Direct entry way means the entity carries out related financial and real estate businesses independently, while indirect entry means the entity buys existing financial assets through the secondary market and other channels. The results show that the direct entry of enterprises into the financial and real estate business will reduce the audit quality. And enterprises in the way of indirect entry into the financial and real estate business will improve the quality of the audit.
Cite this paper: Cui, Z. (2018) Research on the Impact of Entity’s “Non-Professional Business” on Audit Quality. American Journal of Industrial and Business Management, 8, 827-832. doi: 10.4236/ajibm.2018.84057.
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