Internal Control,Audit Opinions And Accrual Earnings Management

The rapid development of the securities market at the same time accompanied by high frequency financial fraud case, from the original American Enron, WorldCom, Tyco, Lehman Brothers and other large international financial scandal, to the fraud case in China, green earth, CAO oil fraud scandal, etc., these problems the company behind the one thing in common:management of the enterprise for their own interests in a lot of earnings management and opportunistic behavior, regardless of enterprise internal control system as well as external audit regulation. The United States in 2002 issued to urge enterprises to perfect the internal control of Sarbanes-Oxley, in 2010 the Chinese government issued "the form a complete set of internal control guidelines" and "internal control audit guidelines". Under the background of constantly improve the regulatory system in our country, this article will study and explore the internal control and external audit opinion in the actual regulation of enterprise surplus management, whether both play the role of adequacy.Taking the period from 2012 to 2014 in Shanghai and Shenzhen listed companies in the non-financial data as the basis, accruals earnings management as a measure of corporate earnings management standard. Research for the internal control and external audit opinion whether individual impact on accrual earnings management, as well as the existence of substitution effect when the combined effects of both.In this paper, use two kinds of method to research on the above issues:normative analysis and empirical analysis, normative analysis which mainly uses literature review and theoretical analysis from three aspects of literature were summarized and analyzed, including internal control, external audit opinion and accrual earnings management, and related theories are summarized and summarized, on this basis, combined with microeconomic theory of substitutes and complements the analysis, the paper studies the hypothesis that inhibition of maneuverability in common process accruals earnings management, and has a certain substitution effect between the external and internal control audit opinion.The empirical analysis mainly have three parts of contents:the establishment of models and assumptions, variables, selection of variables and empirical test. External control and internal audit opinion in the argument between the two factors have certain substitution effect of need to separate the inspection before, to demonstrate its maneuverability could to accrual earnings management inhibited, and thus are proposed hypothesis, and reference to previous studies, addition of an appropriate control variable regression model. About measurement variables, the internal control goal realization degree as control index of metrics, whether to have the big four international accounting firm issue a standard unqualified audit opinion as a measure of audit opinion, handling accrued items with modified Jones model measurement. After sample data for the descriptive statistics, correlation test for variable, then the regression analysis was conducted for the three regression models respectively. Three hypotheses of this paper is proved in the empirical analysis, this article conclusion is thus concluded that the higher the quality of internal control and audit opinion, handling the less accrual earnings management, but also in suppress accruals term earnings management process in both there is a certain substitution effect.Finally, the article summarized in the paper in the process of research and analysis and can continue to expand the direction of the research, after the conclusion of the paper as the basis, at the same time, respectively to the domestic accounting firm how to improve the quality of external audit, how to enhance the level of internal control, and regulatory agencies how to further improve the supervision system construction, puts forward some operable suggestions.