Auditing Market (Analysis from the Perspective of Industrial Organization)

Author: Li Tiao
Publisher:
Publish Date: 2005-04-01
Features: The book is divided into six 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 competitive 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. Part II analyzes and reviews the institutional background of China's securities audit market. Part III discusses the formation mechanism of price competition in the audit market and its impact on audit efficiency. Building on theoretical construction, we conduct an empirical analysis of price competition in China's securities audit market. Part IV examines the "report competition" behavior of accounting firms. Part V studies the reputation-building and industry-specific investment behavior of accounting firms. Part VI investigates the entry and exit behavior of the audit market. Part VII explores regulatory approaches and countermeasures for China's audit market. This book adopts the analytical paradigm 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. Because of 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 problems of competition in China's audit market, avoiding unrealistic "rootless speculation," and thus allowing for targeted implementation of regulatory measures; (3) Criticizing the view that competition harms audit independence and audit quality, pointing out that the market mechanism remains an efficient mechanism, 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.