Can Audit Risk of Listed Companies with Financial Fraud Be Identified——Considering both Factors of Accounting Firms and Corporate Governance
Ren Xue · Journal of Shanxi Finance and Economics University · 2012
This paper takes the listed companies involving financial fraud during the year 2000-2009 as the research objects.On the basis of defining and measuring audit risk identification,the authors test the respective influence and mutual influence on audit risk identification from the features of audit subject(i.e.accounting firms) and corporate governance of audit object(i.e.audited listed companies).The results indicate that,when considering single factor,only the factor of corporate governance has significant influence on audit risk identification.There exists a negative correlation between state-owned controlling stake properties and appropriate audit risk identification,and a positive correlation between multi-position and appropriate audit risk identification.When considering both factors,the factor of accounting firm features would change the influence from the factor of corporate governance to some degree.