Research On The Audit Opinion Prediction Of Chinese Listed Companies

The type of audit report of the list company is highly regarded by all kinds of outsiders, and may have important effects on their decision behaviors. Therefore, it has strong theoretical and empirical implication to predict the audit report of the list company by some appropriate ways.Studies on audit opinion prediction had prevailed in the foreign countries since 1980's, and researches on this subject have been conducted in our country recent year. Most of prior researches were concerned with the establishment of audit opinion prediction model based on only financial ratios. This paper makes use of the financial statement of listed companies in china stock exchange and non-financial information to build a successful model with Logistic model. Based on financial factors, we adds some non-financial variables into the model, such as corporate governance and accounting firms factorsWe choose 178 manufacturing companies received modified opinion in 2003-2005, and under the approach of the similar capital,the same industry,one to one sampling. 178 ones received unqualified opinion were chosen as the matching sample. Building up the audit opinion prediction model based on the financial indicators and the comprehensive audit opinion prediction model based on the financial variables and non-financial variables by Logistic model after extracting principal component factors from 17 financial factors . At last, the predate result indicates that the predicting accuracy of the comprehensive audit opinion prediction model is higher than the audit opinion prediction model based on the financial indicators, non-financial variables have predicting ability in some degree.