Dual policy environment and the quality of the Big Four audit service

Abstract

All along, the Big Four accounting firms are considered to provide a uniform and high standard of audit services, but whether it is as it claims to offer a unified and a high standard audit service, few scholars study this regard. China's capital market is the existence of a dual policy environment, which would provide a special policy context for our research. Based on this, we use the year of 2000–2012 Big Four A-share audit services data of the mainland China companies listed A shares and the company cross-listing in Hong Kong and mainland China, to research if there is difference in Big Four's audit fees audit service quality provided in for different policy environment