The Research On The Audit Opinion Shopping

With a series of significant auditing scandals of Ying Guang Xia and Anron in the domestic and international capital markets in the recent years, much doubt the integrity of certified public accountants and the disadvantageous effect of audit opinion shopping are more and more concerned by the theoretical and the academic fields. But most recent researches are confined to the influence of the auditor switching to the audit opinion shopping, usually ignoring the management of listed companies by raising audit fees of the present auditor. Therefore, the article analyses two factors of audit opinion shopping, one is auditor switching, the other is raising audit fees.I hope it can provide valuable evidence for the monitor of China's securities market.It starts from the basic principles about audit opinion shopping and reviews the domestic and international papers on research of audit opinion shopping. On the basis of these principles, the article gives hypothesizes of the relationship between auditor switching, audit fees and audit opinion. The article constructs the empirical analysis from the existed research. The article is based on the data of year from 2007 to 2009 of the listed companies in Shanghai Stock Exchange and Logistic method is applied. Results showed that the relationship between audit fees and audit opinion is more relevant compared with auditor switching. It also indicated that other factors to influence the audit opinion are the companies' financial situation and operational level. And the influences are not apparent from factors like the scale of the companies and listed year.