Reasons Behind Auditor Switch
Factors Influencing Auditor Switch: Evidence from A Shares Companies Listed in Shanghai and Shenzhen Stock Exchange in China
BY
Deng Zhirui
0930600019
BBA-Accounting
Li Lujun
0930600064
BBA-Accounting
A Business Project Submitted to the Division of Business and Management in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours)
Beijing Normal University – Hong Kong Baptist University
United International College
April 2013
Table of Content 1. Introduction 1 2. Statement of problems 2 3. Literature Review 3
3.1 Theory Framework 3
3.2 Qualified Audit Opinion 4
3.3 Audit Fee 5
3.4 Client Financial Distress 6
3.5 Auditor Locality 7 4. Objective of this study 9 5. Statement of Hypotheses 9
5.1 Qualified audit opinion 9
5.2 Audit fee 10
5.3 Client financial distress 10
5.4 Auditor locality 11 6. Data and Research Methodology 12
6.1Data Collection and Sample Selection 12
6.2 Variable Definition and Measurements 12 6.2.1 Dependent Variable Definition and Measurement 12 6.2.2 Independent Variable Definition and Measurement 13
6.3 Research Methodology 15 7. Findings and Analysis 16
7.1Descriptive statistics 16
7.2 Pearson Correlation Analysis: 17
7.3 Regression Analysis 19 8. Limitation 21 9. Conclusion 22 10. Reference 24
10.1 English Reference 24
10.2 Chinese Reference 29 11. Appendix 31
List of Tables
Table 1 Variable Measurement14
Table 2 Variable Descriptive Statistics16
Table 3 Pearson Correlation Analysis17
Table 4 Logistic Regression Result18
Table 5 Logistic Regression Result except Client Financial Distress19
Table 6 Logistic Regression Result except Qualified Audit Opinion19
Acknowledgement
Firstly, we would like to express our sincere gratitude and appreciation to our supervisor, Dr. Raymond Ho, Assistant Professor of Division of Business and Management of Beijing Normal University-Hong Kong Baptist
BY
Deng Zhirui
0930600019
BBA-Accounting
Li Lujun
0930600064
BBA-Accounting
A Business Project Submitted to the Division of Business and Management in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours)
Beijing Normal University – Hong Kong Baptist University
United International College
April 2013
Table of Content 1. Introduction 1 2. Statement of problems 2 3. Literature Review 3
3.1 Theory Framework 3
3.2 Qualified Audit Opinion 4
3.3 Audit Fee 5
3.4 Client Financial Distress 6
3.5 Auditor Locality 7 4. Objective of this study 9 5. Statement of Hypotheses 9
5.1 Qualified audit opinion 9
5.2 Audit fee 10
5.3 Client financial distress 10
5.4 Auditor locality 11 6. Data and Research Methodology 12
6.1Data Collection and Sample Selection 12
6.2 Variable Definition and Measurements 12 6.2.1 Dependent Variable Definition and Measurement 12 6.2.2 Independent Variable Definition and Measurement 13
6.3 Research Methodology 15 7. Findings and Analysis 16
7.1Descriptive statistics 16
7.2 Pearson Correlation Analysis: 17
7.3 Regression Analysis 19 8. Limitation 21 9. Conclusion 22 10. Reference 24
10.1 English Reference 24
10.2 Chinese Reference 29 11. Appendix 31
List of Tables
Table 1 Variable Measurement14
Table 2 Variable Descriptive Statistics16
Table 3 Pearson Correlation Analysis17
Table 4 Logistic Regression Result18
Table 5 Logistic Regression Result except Client Financial Distress19
Table 6 Logistic Regression Result except Qualified Audit Opinion19
Acknowledgement
Firstly, we would like to express our sincere gratitude and appreciation to our supervisor, Dr. Raymond Ho, Assistant Professor of Division of Business and Management of Beijing Normal University-Hong Kong Baptist