The Research Of The Correlation Of The Earnings Management And Auditing Opinion

Audit opinions and the relationship between earnings management research originated in foreign countries, many scholars have conducted in-depth study, and achieved encouraging results. China's relatively late start of the study, with the gradual improvement of the socialist market economy, but also achieved some results.21st century, the vagaries of the world economy, economic globalization is an indisputable fact, in 2007 by the U.S. subprime mortgage crisis triggered by the world financial crisis to the world economy caused a huge impact, many countries have been severely affected. Relatively speaking, China's economy in this crisis has been less affected, the Chinese once again attracted global attention. It should be noted, China's enterprises in the management still have many deficiencies, the phenomenon of earnings management is still very serious, external financial reports released a lot of water. The main duties of certified public accountants audit the financial statements is to enhance the credibility of financial reporting. In recent years, China's CPA industry developed rapidly, in terms, of firm size, number of employees or the terms of the CPA, have been greatly improved. Audit quality is not that have the same change? Audit opinion to a large extent reflect the quality of the practice of certified public accountants, this article is to audit opinions and earnings management through the relationship between the two study, looking CPA reveals the extent to which earnings management activities of listed companies, in order to understand the quality of the practice of certified public accountants. and how to improve the quality of the audit recommendations.Articles by empirical and normative research methods to study the combination of audit opinions and earnings management relations. Article is divided into five parts, the first two parts using standard analysis methods, first reviewed the previous research results, and the concept of earnings management, motivation, tools and theoretical analysis of audit observations made. Three and four two parts of an empirical study of the method, using the 2008 and 2009, China A-share listed company's financial data and empirical analysis of audit data, we first describe the variables related to statistics, by univariate analysis and linear regression means of earnings management and audit opinions on the relevance of an empirical study. According to the results of empirical research, we found that earnings of listed companies between management and the audit opinion significant positive correlation. Of listed companies by industry, a separate analysis of the manufacturing sector, found that the audit opinion and the relationship between earnings management no significant relationship, which describes the different industries, the CPA's audit quality is not the same. The fifth part is the basis of the previous analysis, combined with China's current market environment, legal regulations and policies, on how to identify the earning management of listed companies and to further improve the quality of certified public accountants and other aspects of the audit practice of some policy recommendations. These proposals from the government departments, accounting firms and listed companies raised three angles. Including sound laws and regulations, improve the legal environment; improve the external professional environment and improve the supervision of the CPA profession; to improve the audit staff of professional capacity, and improve professional ethics; to strengthen internal management and control of accounting firms and management.Article in the efforts of the following aspects. In the empirical research part of the business activities of listed companies and non-routine activities into daily activities, daily activities of the earnings management contingency margin to reflect the use of controlled, non-profit management of the daily activities of non-recurring gains and losses with the ratio of total profits to reflect the empirical analysis models were constructed. Selected samples, select the Shanghai Stock Exchange and Shenzhen Stock Exchange listed companies as samples of all, in the full analysis, but also a separate analysis of the manufacturing industry. Explained when dealing with different industries, the level of practice of certified public accountants.