Abstract: By selecting the A-share listed companies from 2005 to 2014 in Shanghai and Shenzhen stock markets as samples, this paper studies the impact of alumni relation between the executives of listed companies and the CPAs on audit opinions. The result shows that the companies having alumni relation between the executives and the CPAs are more likely to obtain the standard audit opinion for that year. Further analysis shows that when the accounting firm is changed, and the alumni relation between the executives and the CPAs also changes from non-existence into existence, the listed company is likely to realize the purchase of audit opinion in the year of changing. And the listed company with such alumni relation between the executives and the CPAs may pay higher audit fee. These findings provide empirical evidences for the influence of alumni relation on external independent audit; therefore, the investors and the supervision departments should pay more attention to the impact of soft factors, such as nepotism and so on, on audit quality.

Key words: alumni relation; company senior manager; CPA; audit opinion; audit fee