Affecting Factors to the Independent Audit Quality of Chinese Listed Companies: Practical Analysis to Surplus Management Based on Freewill Accounting Policy Change

Listed companies usually manage the surplus by freewill accounting policy change (policy change for short). Whether certified public accountants (CPA for short) could identify it correctly, release appreciate audit opinions to reduce information dissymmetry between investors and company management, and to reduce exchange cost of investment decisions is critical to the efficiency of independent audit. This essay studied on audit opinions of listed companies with policy change in Shanghai and Shenzhen from 2002 to 2004, and regarded the measurement standards to the listed companies independent audit quality of policy change surplus management as whether releasing none-standard audit opinions; considering the affecting factors to the independent audit quality from the listed companies structure characteristics and CPA firms characteristics, constructing maths models between independent audit quality and each affecting factor, to offer policy gist to the improvement of listed companies independent audit quality by practically analyzing correlation of such financial reports independent audit quality and each affecting factor.