it’s easy about deprived of the objectivity and the power of supervision, which will increase the agency problem and impacts the relationship between the audit quality and the financial distress.
Measuring the quality of auditing with the Big 4 firms can effectively reduce the occurrence of corporate financial distress, the leadership structure of CEO duality cause audit quality could not exert it's supervisory effect.
On top of that when the CEO and chairman are the same people, it’s easy about deprived of the objectivity and the power of supervision, which will increase the agency problem and impacts the relationship between the audit quality and the financial distress.
This article takes the review past the cases of financial distress in the past, it can be found that many cases are caused by the not working of the corporate governance system. External supervising is based on the fact that an accountant with professional competence gives objective opinions of investors to use as a reference.
Thus, audit quality plays an important role. This study begins by discussing the effect of audit quality on financial distress.
- TOMING88Lv 76 個月前最佳解答
Translation has no better one or worser one than being expressed , explained in simple or less technical terms and depends on your interpretation.Errors and corrections are in brackets, the parenthesis(----).
(1)It is easy to deny (not deprived) its objectivity and supervisory(performance) that will increase the "agency problem", and then (affects) the audit verification(not quality) and financial crisis (between).
(2)To measure the quality of auditing verification by the Big 4 firms can effectively reduce the ocurrence of the Corporate's financial (crisis). In the case of the general manager and chairman of the Board (leadership duality combined), audit verification (not quality of whom) can not contribute (not play) its supervisory effects. On the contrary, there are significant difference (exists).
Amendment No.1=a repeat on end of 2-->on the beginning of1?
---In addition, the study holds that when the general manager and the chairman of the Board are the same person, it is easy to (deny) its objectivity and supervision (performance) which will increase the "agency problem",which (affects)(not impact) the relationship between audit verification(not quality) and financial (crisis, not distress).
---The article reviews (cases) of financial (crisis)in the past are caused by not working with the (mechanism and system) of the Corporate Goverance. External supervision is based on the fact that an accountant with professional competence gives objective opinions (for investors to refer to).
---Therefore ,audit verification(not quality) plays an important role(not in this). The study first (explores the impact of) audit verification on financial (crisis).
- prisoner26535Lv 76 個月前
你在 paragraph 1之中所說的 "會增加代理問題" 的 "代理"是神意思呢?
Additionally, we found it lose objectivity and the power in oversight in case when CEO and chairman of the board are taken by a single person. It also weakened the representation quality and further deteriorated the connection between audits and financial strengths.