Empirical Research On The Effect Of Revised China Going Concern Auditing Standards

On 1^st of July2003, CICPA issued the revised auditing standards: "IndependentAuditing Standards No. 17——Going concern", whose purpose is to regulate theauditors' behavior, improve the auditing quality and supply more useful information to the report users. This paper tries to discuss the functions of the new standards.We collect companies that issued A-shares in Shanghai and Shenzhen stock market from the year 2001 to 2004 as analysis samples and we take a 3-step procedure to test our hypothesis. Firstly, the paper uses descriptive statistics method to analyze the general situation and the changes of the going concern opinions before and after the new standards; Secondly, we take the logistic model which comprises a dummy variable about whether the standards are revised or not ,some control variables about financial index, characteristics of accountant office, last year's auditing opinion and the characteristics of managers, we test the effect of the new standards for the auditors to decide whether delivering GCO or not and which kind of GCO should be delivered.The results demonstrate that the quality of auditing reports is comprehensively improved by the revision of the new auditing standards, but the influences are different: It is notably significant for the first, but not obvious for the latter, a farther research is needed. According to our conclusion data, some suggestions on how to improve the quality of auditing information are put forward.