To Study On Earnings Management And The Audit Opinion Based On Listed Companies In China

Earnings management and audit quality originated in foreign countries, many scholars have conducted in-depth study, and achieved gratifying results. With the development of capital markets, this issue has become one of the hotspots of accounting theory and empirical research in China.Earnings management is widespread listed companies in China, has greatly hindered the standardization of development of securities market in China. Stakeholders hope the Certified Public Accountant audit of the financial report for the earnings management of listed companies, it is expected to play the role of inhibition of earnings management. In this context, we study earnings management and audit quality proxy variables-the audit opinion, to see the Certified Public Accountant can reveal the extent to which the listed company’s earnings management activities, in order to understand the Chinese Institute of Certified Public Accountants the practice of quality, and how to further improve the quality of our audit recommendations.In this paper, we have adopted a method of combining normative and empirical research. First of all,it is to recognize earnings management and the audit opinion on the concept on the basis, we theoretically analyzed the correlation between earnings management and the audit opinion; Second, we analyzed the status of the earnings management of listed companies in China, including:the presence of earnings management conditions, the motives of earnings management behavior, the use of earnings management tools and how to identify earnings management; again, we conduct an empirical study of earnings management and the audit opinion, and our audit opinion as the dependent variable as independent variables to the earnings management by adding control variables to build a multiple logistic regression model and multi-sensor model; Finally, we focused on the status quo, from government departments, public companies and accounting firms and other suggestions for improvement.The main contribution of this paper is to:(1)neural network-multilayer sensor dynamic methods into research, found that CPA audit opinion in China, we consider the main factors is the company’s financial position and operating conditions, rather than the surplus Identifying Earnings Management of Certified Public Accountants, the management issues;(2) Excluding the impact of macroeconomic factors to use2004-2010,we found that with the new accounting standards, the promulgation and implementation of audit quality gradually improved;(3) we examined the effect of the split share structure reform, with the share reform Feibiaoyixian increased, CPA is more sensitive to signs of earnings management on the company’s share reform.