Research On The Relevance Of Going-concern Opinions And Earning Management

Owing to the market competition increasingly intensifying, so the enterprise’spotential uncertainty of ability to going-on is increasing ceaselessly as to cause theuse of going-concern assumption challenged. If CPA failed to detect the going-concern problem, it will lead to increase audit risk. Therefore, to assess thereasonable of the audited units’ going-concern assumption and issue reasonableaudit opinion, it helps to reduce the audit risk so as to supply subsidiaryinformation for CPA auditing.From the certified public accountants auditing standards Chinese (No.1324)sustainable management, the importance of audited units’ continued operatingcapacity is increasing, which requires the audit opinion can provide with morehigher quality of audit information.Whether non-standard unqualified audit opinions caused by the uncertaintyof going concern reflect the truth of earnings management is researched, accordingto relevance of non-standard unqualified audit opinions caused by the uncertaintyof going concern and earnings management. Through the literature analysismethod, the mechanism of auditing opinion and earnings management isunderstood by the qualitative analysis, and the relationship between earningsmanagement and audit opinion are discussed. At the same time, according to thetheoretical analysis to measure earnings management model and researchhypothesis of information construction, the effectiveness of going-concernopinions is explored in the expression of earnings management. From2010to2013listing corporations’ sample data, we received a total of306copies of unqualifiedopinion with explanatory notes, and used Jones model and real earningsmanagement measuring models, as well as EXCEL, SPSS and other computer statistical software for empirical test and quantitative analysis. The analysis of theobtained results not only have sufficient theoretical basis, but also the empiricaltest support, to achieve the unity of quantitative and qualitative analysis.The conclusions as follows:(1)Non-standard unqualified audit opinions caused by the uncertainty ofgoing concern and other reasons and accruals management have the positivecorrelation.(2)Non-standard unqualified audit opinions caused by the uncertainty ofgoing concern and real earnings management have the positive correlation, non-standard unqualified audit opinions caused by other reasons and real earningsmanagement have no positive correlation.Because of earnings management, auditors trend to issue non-standardunqualified audit opinions. Therefore, non-standard unqualified audit opinionscaused by other reasons and real earnings management still have space to improve.