Study On The Determinants Of Audit Opinion

With the development of the domestic stock market, the audit opinion was paid more and more attention by the supervisor, investor etc. In the recent years, several failure of the audit has sounded the alarm for us. What has influenced the CPAs who are the third party to produce the audit opinion which is not objective and injustice? The study on the determinants of audit opinion is important area at the study on the audit. Many scholars at home and abroad do lot at the study on the determinants of the audit opinion for many years.In the new era, especially after the practice of the new auditing standards, the effect of determinants received from former study and the new standards has not been validated. To check out the effect of determinants received from former study and the new auditing standards is the starting point and the innovation of this paper.Theoretical study and empirical study are both used in this paper. First, this paper made analysis and sum-up on the former study through review of the literature and also analyzed the defects of the current auditing commission in the theoretical way. Next, this paper made some hypotheses and set up the variables of the determinants. The listed companies on the Shanghai A-share stock market in years of 2005 and 2006 are the samples of the empirical study. Descriptive statistics and the logistic regression are used in this paper.Empirical results indicated that there is little effect of the scale, the audit term and the audit fee of the accounting firms on the audit opinion and "Big 10" accounting firms show no higher quality than "Non Big 10" ; CPAs have the capacity to find out the earning management of the listed companies and there is discrimination to different earning management; CPAs are very cautious to the risk of the listed companies; there is high durative on the audit opinion in China and at last, the new auditing standards didn't show good results in the first practice year.On the base of the empirical study, this paper summarized the defects of the audit industry and brought up some recommendations which are to rationalize the malformed principal-agent relationship and to promote the implementation of the new auditing standards.