Audit Opinions Study Based on the Perspective of Accounting Firm
|School||Tianjin University of Commerce|
|Keywords||Audit Opinion Accounting Firm Scale Audit Tenure Client Importance Professional Skill|
Since Enron and domestic Yinguangxia event’s occurrence, social trust ofaccounting firm has declined sharply. Accounting firm should serve as an independentthird party, but Collusions happened between accounting firm and corporation. Thismakes the authority of accounting firm’s assurance report been greatly questioned.People are worrying about Audit quality. However, with the establishment of thesecond in the world economy, China’s economy has made considerable development.Until December31,2011, there are2485listed companies in Shanghai and ShenzhenStock Exchange. Because of the status in the market economy and the breadth of itsinvestment entities of listed companies, the audit opinion published by the accountingfirm has an extremely important role. Therefore, many scholars came to research theimpact of the factors on the audit opinion.In this paper, based on reference to theresearch literature, I research the influence of relevant elements of accounting firm.What’s more, from the size of the accounting firm, audit tenure, customer importance,to accounting firm professional skills, we research the audit opinion.The paper firstly introduces the research meaning, background, ideas, methods,articles framework, and constructive work. The second chapter explains research athome and abroad. By means of the literature review, we introduce the theme of thispaper. Then, by describing reputation theory, the audit opinion theory, principal-agenttheory, the main entities in the market theory, the theory of economies of scale, thispaper put forward four assumptions. The fourth chapter is mainly the empirical design,including research assumptions restatement, variable definitions, model construction,sample selection and data sources. We take Shanghai and Shenzhen listed company onthe Main Board from2010to2011as the research object, and implement the empiricaltest of the size of the accounting firm, auditing tenure, client importance and theprofessional skills of the accounting firm. The fifth Chapter is mainly the analysis ofthe empirical results, including variable descriptive statistics and the analysis oflogistic regression. The final chapter is research conclusions, policy recommendationsand research limitations. Via the research, we draw the conclusions as follows: The size of accounting firm, audit tenure, client importance and professional skills ofaccounting firm play a significant influence on the non-standard audit opinion. Thereis a significant positive correlation between the size of the accounting firm,professional skills, and non-standard audit opinion. Audit tenure and customersimportance have a significant negative correlation with the non-standard auditopinion.