Abstract Audit is useful mechanism to improve the credibility of accounting information,which depends on audit quality. The audit quality is related to the effective institutional environment such as markets and laws. But the institutional environment is usually unsatisfactory in emerging markets. So it is wondered whether audit in emerging markets is valuable, and whether the shredded reputation of CPA is punished by markets. Based on China' evidence, this paper finds that markets do punish the shredded reputation of CPA.
|
Received: 09 February 2009
|
Corresponding Authors:
FANG Jun-xiong
|
|
|
|