Infrequent Earnings Items, Earnings Management And The Auditors’ Opinion

As an important part of accounting theory and practice field in the core of themeaning of accounting surplus management problem, we found that infrequentearnings (IE) and become listed companies, one of the important methods ofearnings management. In recent years, the listed companies in China there is awidespread earnings quality is generally low, and IE each project in profit in theproportion of the increasing phenomenon, many listed companies are beginning touse IE to whitewash the performance, make the performance level seriousdistortion. Due to IE project contains the content and form of varied, using IEadjusted profit means also revealed a diversified and complicated, but differentcompanies for different purposes is on the basis of different criteria requirementsto choose different extraordinary IE to manage the surplus, in order to meet thespecific needs of a particular period. In this case, the external independent audit towhether or not earnings management has certain identification ability, thus able toidentify the listed company profits and losses of the regular use of the specificproject to the behavior of earnings management, and gives the correspondingaudit opinion, that is, IE each subproject can for listed companies earningsmanagement to provide more space, the auditor can identify the behavior, andissue corresponding opinion.In view of the aim of this study, this paper in China’s2008-2011listedcompanies as the research object, using the standard and empirical combination ofresearch methods, listed companies in China will IE the project specificconditions for the frequency statistics analysis, from the overall state analysis,occurrence and composition analysis and the project stratified analysis, etc.,through the sample company longitudinal comparison and horizontal contrast analysis, to verify that the listed companies in China and IE to the specific project,so as to obtain the whole situation of listed companies use IE each project is areality of earnings management, at the same time, build appropriate model toempirical shows IE of the current project and earnings management and therelationship between audit opinion. Focus on in2008and revised the relevantpolicy to its close under the background of the listed companies of China’s varioustypes of using IE of specific projects to achieve the purpose of surplusmanagement, and on the basis of the analysis of IE are not specific projects,earnings management and auditor’s opinion, and the relationship between can beseen in the market economy in our country has not yet perfect background, theauditor can identify enterprise of earnings management behavior, and can throughthe listed companies of IE of the use of specific projects to show thecorresponding opinion, thus inhibiting and reduce China’s listed companies’earnings management behavior.