Audit Market: An Analysis from the Perspective of Industrial Organization

Author: Li Tiao
Publisher:
Publish Date: 2005-04-01
Features: The book is divided into the following parts: Part I is the introduction. This part first proposes the significance and importance of studying the competitive behavior of accounting firms and clearly defines the research object as the market behavior of accounting firms in the securities audit market. Based on a review of domestic and international research, we outline the research path of this book. The second part analyzes and reviews the institutional background of China's securities audit. The third part discusses the formation mechanism of price competition in the audit market and its impact on audit efficiency. Based on theoretical construction, we conduct an empirical analysis of price competition in China's securities audit market. The fourth part studies the "report competition" behavior of accounting firms. The fifth part examines the reputation building and industrial-specific investment behavior of accounting firms. The sixth part investigates the entry and exit behavior in the audit market. The seventh part explores regulatory approaches and countermeasures for China's audit market.
This book adopts the analytical framework of industrial organization to study China's audit market, with the aim of enriching and deepening the understanding of the audit market from a fresh perspective. Due to the different research perspectives, this book has some academic innovations. These innovations are reflected in: (1) incorporating the competitive behavior of the audit service industry and the regulation of the audit market into a unified mainstream analytical framework of industrial organization, thereby enabling more systematic and comprehensive research; (2) conducting an empirical analysis of the competitive behavior of China's audit market, more clearly revealing the current state and existing problems of competition in China's audit market, avoiding unrealistic "rootless speculation," and thus allowing for targeted implementation of regulatory measures; (3) refuting the view that competition harms audit independence and audit quality, pointing out that the market mechanism remains an efficient mechanism, capable of providing many lower-cost quality assurance mechanisms compared to regulation. However, regulation is still necessary, and a correct understanding of the competitive behavior of the audit market contributes to improving regulatory efficiency.
The book is divided into the following parts: Part I is the introduction. This part first proposes the significance and importance of studying the competitive behavior of accounting firms and clearly defines the research object as the market behavior of accounting firms in the securities audit market. Based on a review of domestic and international research, we outline the research path of this book. The second part analyzes and reviews the institutional background of China's securities audit. The third part discusses the formation mechanism of price competition in the audit market and its impact on audit efficiency. Based on theoretical construction, we conduct an empirical analysis of price competition in China's securities audit market. The fourth part studies the "report competition" behavior of accounting firms. The fifth part examines the reputation building and industrial-specific investment behavior of accounting firms. The sixth part investigates the entry and exit behavior in the audit market. The seventh part explores regulatory approaches and countermeasures for China's audit market.
This book adopts the analytical framework of industrial organization to study China's audit market, with the aim of enriching and deepening the understanding of the audit market from a fresh perspective. Due to the different research perspectives, this book has some academic innovations. These innovations are reflected in: (1) incorporating the competitive behavior of the audit service industry and the regulation of the audit market into a unified mainstream analytical framework of industrial organization, thereby enabling more systematic and comprehensive research; (2) conducting an empirical analysis of the competitive behavior of China's audit market, more clearly revealing the current state and existing problems of competition in China's audit market, avoiding unrealistic "rootless speculation," and thus allowing for targeted implementation of regulatory measures; (3) refuting the view that competition harms audit independence and audit quality, pointing out that the market mechanism remains an efficient mechanism, capable of providing many lower-cost quality assurance mechanisms compared to regulation. However, regulation is still necessary, and a correct understanding of the competitive behavior of the audit market contributes to improving regulatory efficiency.