Research On Correlation Between Going-concern Ability Of Chinese Listed Companies And Audit Opinions

With the speeding up pace of economic globalization, the global market hasbecome a whole one, domestic enterprises choose to develop overseas business, largenumber of foreign enterprise unceasingly stationed in the country, which made the riskglobalization. In2008, the financial crisis erupted from the United States, swept theworld quickly, many companies went bankrupt, including many "century-old"businesses. The fierce market competition and rapid technological environment makesthe living environment of modern enterprise ever-changing, Business continueduncertainty problem increasingly highlight. So market investors increasingly concernedabout the continued viability of the enterprise, and the researchers deepen study ofenterprise’s continued viability. CPA as an independent "third party" has responsible forauditing the management activities of the enterprise, and the audit activities need to usea lot of professional judgment. The judgment of the enterprise’s going concern ability isdifficult, and the investor difficult to find useful information from the audit report. Thegoing-concern uncertainty of enterprise continues to deteriorate, eventually leading tobankruptcy; bankruptcy is a sustainable development process. CPA how to distinguishthe continued viability of enterprise through the expertise? Are the significantuncertainties of enterprise continued viability associated with the audit opinion?Whether investors can predict audit opinion by the published financial information andnon-financial information? To answer these questions, this paper conducts specialstudies from the perspective of correlation between going-concern ability of Chineselisted companies and audit opinions.Firstly, on the basis of summarizing and evaluating research achievements both athome and abroad, the author knows about the correlative theory between the auditopinion and the enterprise’s going-concern ability, which provides theory foundation forthe selection of sample, variable and model. Then obtained the samples from thenon-standard audit opinions which for going-concern from2003to2012. According tothe historical research achievements, this paper chooses twelve financial indexes aboutthe uncertainness of going-concern ability to make factor analysis. This paper tries tomake a scientific system for the evaluation of going-concern ability, using thecomposite scores to measure the enterprise’s going-concern ability. Then put thecomposite scores into the ternary logic regression model to predict the audit opinions. Finally, it comes to three conclusions: First, the enterprise’s going-concern abilities aresignificant different between different type of audit opinion; Second, the company’sgoing-concern ability is negatively related to the degree of audit opinion; Third, usingthe logistic model to predict audit opinion, and the overall accuracy rate is67.12%, sothe result is better and acceptable.