Research On The Motivation And Realization Of Yangzi New Material Purchase Audit Opinion

Audit is an effective means of supporting the supervision of financial data for listed enterprises.By verifying the authenticity and fairness of accounting information,it ensures the actual value of publicly disclosed financial information.However,at this stage,the external audit market in China is not yet fully developed,and a strong audit opinion shopping motivation has existed for a long time.This can be attributed to two reasons: Firstly,the demand for external audit of listed enterprises arises from mandatory requirements of government regulatory agencies,and most listed enterprises have internal control issues,i.e.,there is an overlap between audit clients and audits,which to a large extent,weakens the independence of external audit.Deficiencies in internal governance structures of enterprises and the urgent need to reverse the situation of declining performance often induce enterprises to develop a audit opinion shopping motivation.Secondly,the social audit market has high concentration and intense competition,while the risk of auditors issuing non-standard audit opinions is low.Therefore,auditors have a motivation to supply audit opinion shopping.This paper conducts a study along the line of the current status,motivations,and governance of audit opinions shopping.The first part of the paper introduces the research background and framework,outlines the main research ideas and methods,and provides a literature review based on existing research results both domestically and internationally.The main innovative points of the paper are also discussed.The second part of the paper provides an overall introduction to the theoretical foundation,theoretical mechanism analysis laying a necessary theoretical foundation for subsequent analysis.The third part outlines institutional background of the capital market,including the supervision methods and punishments of the audits and companies.The four part of the paper introduces a case study of Yangzi Petrochemical Co.,Ltd.,analyzing the company’s management and operations,main business,and key financial performance indicators.In particular,the analysis of the scale of audit fees paid by Yangzi Petrochemical Co.,Ltd.shows that the company still incurs high-level audit fees despite the decreasing trend in audit size.The fifth part of the paper analyzes the motives for audit opinion shopping from two perspectives: demand-side and supply-side,with a focus on the behavior of Yangzi Petrochemical Co.,Ltd.The last part of the paper provides conclusions and recommendations.Recommendations are made from the perspectives of audit demand,audit supply,and regulatory oversight.This paper suggests that it should establish a credit mechanism,strengthen information disclosure,improve corporate governance structures,and correct management behavior.Audit suppliers should enhance audit independence,strengthen branch management,and establish a system for rotating auditors.Market regulators should ensure that social supervision is institutionalized,strengthen audit subject supervision,and promote the healthy and orderly development of the asset market.