The Impact of A Large CPA-firm Split on Issuing a Going-concern Opinion.

• Main Author: 賴菽祺
• Other Authors: 陳皆碩
• Format: Others
• Language: zh-TW
• Online Access: http://ndltd.ncl.edu.tw/handle/37171582829966623020

碩士 === 國立彰化師範大學 === 會計學系 === 103 === In recent years, CPA-firms have sought the merger to expand its size and enhanced audit quality. In Taiwan, scholars do many empirical researches about CPA-firms merger. However, empirical results find that merger not necessarily make CPA-firms improve its audit quality in Taiwan. Therefore, this paper we investigate CPAs who split from Ernst &; Young's CPA-firm and have financially distressed firm as the research object, and by CPAs issuing a going-concern opinion to alternative audit independence to explore CPAs who split from CPA-firm impact on audit quality. The decision of a CPA to issue a going-concern opinion must consider the trade-off between “economic dependence” and “reputation protection”. Our empirical results find that the large CPA-firm (Ernst &; Young CPA firm) issue the less likelihood of going-concern opinion. It represents audit quality decreasing. While small CPA-firm (Diwan &;Company CPA firm) issue the more likelihood of going-concern opinion. It represents audit quality increasing. In addition, compared to large CPA-firm, small CPA-firm the magnitude of issuing going-concern opinion of the probability is bigger and is apt to issue more going concern opinions after the CPAs split from Ernst &; Young's CPA-firm which represents audit quality increasing.