Based on the established audit cost model, we analyze the auditor switching behavior arising from the material assets reorganization. Using a sample of Ashare listed companies during the 2007—2012 period in China, we examine empirically the joint effects of material assets reorganization，auditor industry specialization, and ownership of auditor switching behavior. The results reveal that the likelihood of auditor switching increases after companies carry out material assets reorganization. Furthermore, auditors with industry specialization are more likely to inhibit auditor switching behavior following material assets reorganization. Further findings show that the inhibition effects are more significant in the nature of state ownership companies.