An Empirical Study on the Correlation of Audit Market Concentration and Audit Quality - A New Discovery Based on Chinese Securities Market

Using the data of listed firms from 2002 to 2009 year in the Chinese securities market, this paper do an empirical study on the correlation of audit market concentration and audit quality. The results showed that: China´s audit market concentration is still at a low level, but is gradually improving; the ratio of Non-standard audit opinion, as a proxy for audit quality was not positively correlated with the market concentration from 2002 to 2009, the development trend shows an opposite direction.