Auditors' Initial Auditing Service and Audit Quality: From the Perspective of Career Care

Abstract

Abstract: To guarantee the audit quality of the auditor's initial auditing service is one of the important issues in the audit quality control of the accounting firms. Based on the career care theory, this paper examines the audit quality issues of the auditor's initial audit service by taking China's listed companies and their annual report signing auditors as samples. The results show that the career starting point effect generated from the auditor's initial auditing service can make up for the lack of personal experience, and thus can guarantee the auditing independence and the audit quality. The longer the growth period of the auditor, the better the audit quality will be. The findings of the expanded analysis indicate that the“same city”relationship between auditors and clients would interfere with the auditing independence of the auditor's initial auditing service and reduce the audit quality.

Key words: auditor, initial auditing service, personal growth period, audit quality

CLC Number:

F239.222

ZHANG Xue-hua. Auditors' Initial Auditing Service and Audit Quality: From the Perspective of Career Care[J]. Contemporary Finance & Economics, 2022, 0(3): 140-148.

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