How Environmental Considrations Influence The Results Of Financial Statement Auditing

It is well-known that stakeholders of enterprise are always tend to take factors inall respects while making their own decisions. Various of environmental problemshave emerged while the social economy is developing in an amazing speed so thatpeople of higher environmental awareness put a higher value on such relevantenvironmental problems, in this way, environmental matters will bring more influencethat should not be neglected to those decisions made by stakeholders of enterprise. Toensure that business continue operating normally, owners of some enterprise will do aseries of harmful behaviors to the environment which could bring serious effects toenterprise once be exposure by the media. First of all a large amount of payment forthe victims of the environment pollution are tend to be required that would makeenterprise trapped in a severe stagnation as well as bring a so heavy blow to thecompanies’ image in their potential investors that they are more likely keep cautiouswhen making decisions. All of these should become disadvantages of the enterprise inthe continuous existence and development. Considering such great impact of that kindof risk creditors and investors are always tend to keep an eye on the environmentpollution while making their investment decisions especially for the heavily pollutedindustry. In that way Certified Public Accountants (CPA as abbreviated) are supposedto pay enough attention to related environmental matters and issue audit opinion morecautiously when auditing the enterprise of such kind of industry to reduce the relevantaudit risk to a certain extent and assure that enterprise show a true and fair view oftheir financial statement.This paper first elaborates some correlative system background of environmentalinformation disclosure as well as the conception of environmental matters and theassociative responsibility of CPA. Then use the audit opinion type as the dependentvariable and the environmental matters as the independent variables to set up alogistic regression model to conduct empirical analysis on the base of the fouryears’empirical data of enterprise in highly polluted industry from2011to2013. Theresults show that government subsidies for the environment protection that enterprisehave got and weather they disclose environmental information supported byindividual project supervision confirms a positive correlation between thenon-standard auditing opinion—that is，the more subsidies for the environmentprotection the enterprise get from the government and disclose environmental information supported by individual project supervision，the less risk the auditors willtake into consideration so that they are more inclined to issued a standard andunqualified opinion. Based on the results from this study some recommendations aresuggested that due to the limitation of their own knowledge frame, CPA can never beprepared for everything therefore the use of experts to solve correlative problems isnecessary in audit work. But it’s also important that CPA get into self improvementendeavors through a variety of ways，combining which with the use of experts areable to increase productivity at work effectively and steadily and guarantee quality ofaudit work so that domestic CPA are capable of relying on more efficient theories andlaws and regulations in the course of their practice.