Notice of RetractionInsurance demand motivation of independent audit — Empirical test on customer risk management of certified public accounting firm

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

Using data on China´s Listed Companies and accounting firms during 1998-2007, from the customer risk management perspective, the article empirically tested the motives of insurance of needs audit and found: the audit risk of resignation customer in an accounting firm has negative correlation with the cross-term: scale of the accounting firm and the Firm Boundary value of acceptable risk, as firms expand their scale and the boundary value of acceptable risk increases, the audit risk of their resignation clients becomes smaller; in the meantime, to some extent, the audit risk of new customers is negative relationship with the cross-border items of their acceptable risk value and firm size, namely, the risk of new audit clients to some extent reduced as the expansion of the firm scale and increasing of the firm boundary value of acceptable risk. The hypothesis of the audit insurance needs can overall establish, but because of civil compensation mechanism is still not perfect and buyer´s market and long-term pattern of the audit, resignations are not yet the optimal decision made by most firms, and we can not radically curb the listed company´s financial Fraud, the audit insurance needs mechanism still need be improved.