The Empirical Study On The Effect Of Auditor Switching On Audit Opinion

With further development of the Capital market, Chinese auditing market becomes more mature and gradually moves closer to the international auditing market. Since the first non-standard auditing opinion reports appeared in 1997, a remarkable change has happened in Chinese securities market for, the cases of auditor switch has been increasing year by year,gradually become a social concern and the focus of government regulation. When foreign researches have shifted to the auditor's resignation, litigation risk, Chinese study on auditor switch has just started. The majority of domestic literature has focused on the study on the impact of change auditor factors, trying to find out the motive of the replacement of auditors, and achieved certain results. However, the listed companies to identify the possible replacement of auditors motivation is not the ultimate goal, but have a comprehensive understanding, to the behaviors of auditors switch, it's the only way to standardize the Chinese market auditors to provide an objective, comprehensive empirical evidence.In the existing literature, the listed companies to improve the audit opinion on whether to switch auditors, and the changes could improve the audit opinion and other issues have yet to be undetermined, but in real life, in addition to change auditors and the audit opinion on, but also And the firm's fees, and geographical relations, firm size, and other aspects of the relevant factors and changes after the firm received by the audit opinion may be no improvement. This article is from listed companies to change auditors of the angle, with a listed company's financial situation, in recent years to China's securities market as the basic background of the audit, to change the auditor of the Shanghai A-share listed companies as the main subjects studied China's securities market to change auditors on the impact of the audit opinion. As auditors before and after the change of audit opinions are not comparable, so that the use of paper twice Lennox (2000) audit opinion on the estimated model, combining the company's financial situation to test the market on the Chinese audit auditors to change the impact of the audit opinion. Research findings show that: the health of the company's financial situation, was issued by the "unclean" audit opinion on the probability of the smaller in the period t-1 was issued by the "unclean" audit opinion of the listed companies, through the period t change auditors Acts to a certain extent, improve the gravity of the audit opinion; listed companies have changed auditors after the "clean" audit opinion on the probability of its financial situation is healthy degree of correlation.This paper is divided into five parts: Chapter 1 is the introduction, the article on the significance of background research and study methods and ideas to do the whole structure on the article. Chapter 2 of the research literature at home and abroad as well as auditors reviewed the theory of change, this is the core theory. Chapter 3 is China's audit of the status quo on the market, mainly from the three levels of analysis: audit opinion on the demand side, supply side and regulatory side. Chapter 4 uses twice that Lennox (2000) audit opinion on China's estimation model in recent years to change auditors audit opinion on the impact of empirical analysis and concluded that this is the core. Chapter 5 is the empirical research findings, policy recommendations and the limitations of this paper.