An Empirical Study On The Impact Of Going Concern Uncertainties Upon Audit Opinion

In 2006, China promulgated new guidelines for Certified Public Accountants professional standards that the new auditing standards. The new auditing standards system based on the improved risk-based audit model basis. In this audit mode, auditors from the traditional concept of risk-based model of the simple concept of the audit - the implementation of the audit process in place, updates to the improved risk-based model of the concept of a comprehensive audit - the audit risk control in place. In the new system, the audit standards and audit under the concept of pattern, material misstatement risk assessment has become particularly important, and the material misstatement in part by the ongoing business caused by the crisis. This is reflected in: the one hand, enterprises have to take deception to cover up the crisis management motivation, which will be transformed into statements of material misstatement or fraud; on the other hand if the CPA fails to detect or identify the risk of material misstatement, or a failure to accurately determine a going concern uncertainty in the extent of the crisis would be inappropriate issued audit reports, which will cause great audit risk. Thus, in the new audit and audit under the concept of models require special attention CPA business continuity assumption is reasonable, and, when necessary, be disclosed in the audit report, the audited entity from continuing operations of uncertainty situation.In this paper, China's Shanghai and Shenzhen listed companies in 2006-2008 samples to the uncertainty related to the audit opinion from continuing operations as being the explanatory variable, to reflect the uncertainty in financial indicators from continuing operations for the explanatory variable, the financial situation of the short-term compensation from the debt capacity, cash flow capacity, profitability, asset management capabilities, long-term solvency analysis in five areas from continuing operations of uncertainty on the impact of the audit opinion. Study of selected indicators have been more concentrated in the enterprise solvency indicators and profitability indicators, this increased to better reflect the quality of corporate earnings and operating cash flow ability to target financial targets. This is precisely the point of this innovation.The results showed that a listed company involved in a going concern audit opinion on the nature of the uncertainty in the short-term solvency and business and long-term solvency of a negative correlation between cash flow and corporate access to a negative correlation between the ability. This shows that the statements of the audit report will help the user understand the units being audited financial viability and sustainability.