Research on Influence of Internal Control Audit on Audit Opinion of Financial Report
|School||Chongqing University of Technology|
|Keywords||Internal control Internal control audit Audit opinion Accounting firm of internal control audit|
The internal control system can reduce random misstatement of managers or staff and the possibility of managers’opportunism accounting choice, and then provide reasonable assurance to the financial report production process, become another important system arrangement to ensure the reliability of the financial report. But the credibility of internal control self-assessment report disclosed by the board of directors is suspect, theoretically, it need public accounting firm to assure internal control self-assessment report, in order to improve the credibility of internal control information. The internal control auditing and financial report auditing have close connection, the implementation together will affect auditing opinion of financial report. This paper empirically researches audit opinions of financial report from the perspective of internal control audit.Firstly, review and comment the domestic and foreign literatures about audit opinions of the financial report. Mainly include these aspects: the financial situation, asset scale, earnings management, characteristics of corporate governance structure, internal control and scale of public accounting firm. After analyzing and reviewing, this paper put forward research on audit opinions from the perspective of internal control audit.Secondly, the internal control audit can strengthen the credibility of internal control self -assessment report, and closely connect with the financial report audit. With the principal-agent theory, signaling theory, the theory of synergic effect and scope economy, this paper analyzes the influence of internal control audit on audit opinions, manifesting internal control audit will impact on auditing opinion in normative.Thirdly, the influence of internal control audit on audit opinion is examined by empirical study method. We choose the A-share listed companies from China’s Securities Market in 2009 that implemented internal control as study samples, match the research and control samples one by one in accordance with the same industry and similar asset scale, and use of means test, median test and logistic regression. The research finds that qualified audit opinion is positively associated with internal control audit. It shows that the listed companies auditing internal control will receive qualified opinion more easily, and internal control auditing has obvious signal transfer effect. In addition, this paper further study the influence of accounting firm scale of internal control audit on audit opinions, with continuous variables-firm’s annual audit revenue in 2009 to measure the scale. The results indicate that accounting firm scale and qualified audit opinions are positively related, but there is no statistical significance. It means that in the voluntary background of internal control audit, accounting firm scale of internal control audit is one of the factors affecting audit opinions, but firm scale effect has not revealed.At last, on the basis of theoretical analysis and empirical study, combined with the conclusions, some advices are put forward: strengthening supervision to the disclosure of internal control information, strengthening the construction of the accounting firm and suggesting a integration audit, implementing different internal control auditing requirements for different enterprises, and improving enthusiasm of enterprises’internal control audit. What’s more, we point out the future research direction after analyzing the limitation of this paper.