Research on the Impact of Entity’s “Non-Professional Business” on Audit Quality - American Journal of Industrial and Business Management

AJIBM > Vol.8 No.4, April 2018

Research on the Impact of Entity’s “Non-Professional Business” on Audit Quality ()

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Download as PDF (Size: 225KB) PP. 827-832

DOI: 10.4236/ajibm.2018.84057 893 Downloads 1,816 Views

Author(s)

Zhenhua Cui

Affiliation(s)

School of Business Administration, South China University of Technology, Guangzhou, China.

ABSTRACT

Driven by the excess return rate, the entity financial trends are becoming more and more intense, which the entity enterprise carrying out financial and real estate business are often advertised as “work outside”. In order to explore whether entity’s “Non-professional Business” can influence the audit quality or not, this paper takes A shares in the two stock markets of Shanghai and Shenzhen between 2007 and 2016 as a sample to find out their relationship. Entity’s “Non-professional Business” can be divided into direct and indirect entry way. Direct entry way means the entity carries out related financial and real estate businesses independently, while indirect entry means the entity buys existing financial assets through the secondary market and other channels. The results show that the direct entry of enterprises into the financial and real estate business will reduce the audit quality. And enterprises in the way of indirect entry into the financial and real estate business will improve the quality of the audit.

KEYWORDS

Entity’s Non-Professional Business, Direct Entry, Indirect Entry, Audit Quality

Share and Cite:

Cui, Z. (2018) Research on the Impact of Entity’s “Non-Professional Business” on Audit Quality. American Journal of Industrial and Business Management, 8, 827-832. doi: 10.4236/ajibm.2018.84057.

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