Auditor Changes And Audit Opinions Correlation

Since the first negative type of audit opinion has emerged in China in1997, the auditservice of stock market has been greatly changed, and the phenomenon has become moreand more popular that the listed company changes auditors, and the alteration ratio greatlyimproved, the cause of this phenomenon become the social focus. For the motivation andthe results of the research of auditor change behavior, foreign the theoretical research hasbeen more mature, and this research in China mostly focused on the influence factors of theauditor change. Therefore, this paper attempts from the more broad to find out whether theauditor change behavior motivation is audit opinion to buy, and this caused some economicconsequences of motivation, for more comprehensive understanding of the auditor change.The paper adopts the theory and empirical research method’s combining. In referenceto previous research results, and on the basis of analysing the relationship between theauditor change and the before and after audit opinion, this paper discusses the impact ofchange decisions to the different types of audit opinions and the role of the auditor changeto the audit opinion economic consequences. In order to validate theory partially out ofassumptions, using Logistic regression method and Spearman correlation coefficientmethod, establishing auditor change model and the audit opinion model, the selection of2008-2010years to meet the requirements of A shares listed company as research samples,and statistical analysis. The results showed that:(1) the listed company last year for thetype of the auditing opinions of the year has significant influence of the change ofdecision-making, the previous year was not qualified opinions issued by the listed companyin this year’s more likely to auditor change;(2) the listed companies issued unqualifiedopinions in the previous year more easily obtain the improvement of the audit opinions inthe second year by the auditor change;(3) the type of the audit opinion in the previous yearinfluences the listed company’s decision of changing auditors,inexpressible opinion influences the greatest. These results have provided the certain basis for the phenomenonthat the listed companies in China purchase audit opinions by changing auditor.Finally, the paper respectiely puts forward relevant policy suggestions for regulators,auditor and listed companies, and points out the shortages of the study in this paper andputs forward the further research direction.