A Discussion of the Individual Auditor Who Have Been Punished and Audit Quality

Abstract

High quality independent audit can enhance the reliability of financial statement information, reduce the cost of principal-agent and improve the efficiency of market resource allocation. In China, the audit report should be signed and sealed by auditor. This means that audit liability can be traced directly to signed auditor individuals, it is even more important to carry out the research on individual audit behavior and audit quality of signed auditor. The research contribution of this paper is to expand the relevant research on auditor discipline, and to deduce from “prior research” through theory. It is found that the low-quality audit behavior is a special case caused by the chartered accountant’s personal characteristics.