Research On The Affect Of The Listed Companies’ Internal Control To The Audit Opinions

In June2008, China’s Ministry of Finance issued the "Internal Control Standards" jointly which are called Chinese Sarbanes-Oxley by five ministries Act. The promulgation of basic Standards marked the overall framework of internal control has been set up to complete. However, with the listed companies which have perfect internal control went bankrupt, the role of the internal control in risk-averse was questioned by scholars. In addition, in order to ensure the company’s operating condition, improve the ability of avoiding risks, we don’t only have good internal control, but also need the independent audit as the external oversight mechanisms. Due to the defects of our current economic system, as well as the company’s ownership structure unreasonable, our audit market is also facing a lot of problems, the independence of the auditors often be threatened, and the reliability of audit opinion is difficult to be guaranteed.In the first the paper reviews the domestic and foreign scholars’ literatures about internal control, corporate governance and the audit opinions. In the theoretical study section, the paper corporate governance structure as the internal control environment of structure factors, elaborated on the interactive relationship between the governance structure and internal control; analyzed the theory of independent auditing in the view of agency relationship; finally, from the point of view of corporate governance, analyzed the relationship between the quality of internal control and audit opinions. On the basis of theoretical analysis, combined with the specific circumstances of our country’s corporate governance structure, the paper proposed research hypotheses from these two aspects of the management compensation structure and shareholders’ equity structure. This paper selected for the triennium2009-2011A-share listed companies as the sample, choose the scale of executive compensation and the company’s ownership concentration as the explanatory variable, and create probit regression model, have an empirical research related to the quality of internal control and audit opinions. Through the variable descriptive statistics, correlation analysis and multiple regression model analysis, the paper make concludes: there is a significant positive correlation between the listed companies’management remuneration scale, the companies’ownership concentration and the standard audit opinions issued by auditors. In order to test the robustness of the model, the paper replaces the control variables of the size of the company’s assets to the company income scale, make probit regression, and came to the same result. Finally, this paper put forward the corresponding policy recommendations which are based on our internal control markets, capital markets and the audit market situation.