Research On Earnings Management Base On Analysis Of Auditor's Opinion For Listed Companies In China

Earnings management is an important area of diagnosis accounting studies which arose in US in the recent 20 years first. The increasing influence of earnings management on the capital market and investors'interests is becoming one of the current focuses of research in the field of accounting. Although the earnings management is wrapped by "legitimate" coat, but certainly unreasonable, specially in our country, because the market, the laws and regulations are not perfect, has tremendous negative influence on the accounting information and the capital market, seriously has misled the report users and affected their decision-making accuracy. In the meantime, the certified public accountants (CPA) trade also is a much-debated area, but its practicing quality can not be assessed only according to a limited number of cases. Therefore it is necessary to study the relationship between audit opinions and earnings management.The paper examines the relationship between audit opinions and earnings management. In this study we review and commend some existing research. The thesis adopts the method of academic and demonstration analysis. Combining basic theory of the earnings management and special condition in our country, emphatically analyze our country listed companies earnings management condition, motives and main methods. The paper use financial and audit data of 1594 listed companies by A as the research object in shanghai and Shenzhen stock exchanges. Firstly this paper proved the universalities and existences of earnings management by extraordinary items. In order to avoiding common linear problem between variables, this paper analyze Spearman order coefficient of 10 factors that may affect auditor's opinion. We use proportion about non-regular increase and decrease contrasting total return by the method of single variable T-test and logistic regression to analyze the correlation of earnings management and audit opinions. On the basis of the outcome of demonstration analysis, we come to the result that earnings management and audit opinions are positive correlation. Accordingly the audit opinion has the certain information content, which can reveal the listed company's earnings management in the certain degree, namely the earnings management has the relevance to audit opinion. Besides, we classify nonstandard audit opinions, find that the more degree of earnings management, the more uncensored audit opinions which is additive explanation be supplied, which in irrespective of other nonstandard audit opinions.Then, we observe the actors which influence audit opinions by importing some variables.In the last, this paper states the conclusion and limitation. Combining China's market environment and policy of law, we put forward some countermeasures and suggestions to improve audit quality of CPA.