The Influence Of Audit Opinion Owing To The New Audit Standards

The new auditing standards issued in 2006 fully stress the importance of risk-oriented audit model and require the certified public accountants to direct auditing activities with high level of audit independence. Using modern risk-oriented audit in China must make an impact on the type of audit opinion.This paper using theoretical analysis and empirical study combining research method, based on the theoretical independence of the audit and risk-oriented audit theory, provide research hypothesis and build a model to analyze the influence of audit opinion owing to the new audit standards. In the logistic regression model, institution variable plays a role of independent variable and controls other related variable which impact the type of audit opinion.Through empirical research shows that: the implementation of new auditing standards show negative correlation with audit opinion. It means that CPAs prefer to issue a modified audit opinion in the new conditions. The paper analyzes the causes from accounting firm, listed companies, the public as well as the macro-environment factors. Further more, unqualified audit opinion with an emphasizing matter shows positive correlation with the implementation of new auditing standards, and negative correlation with others which have higher impact than the former. The paper also finds the operation and profitability ability of listed companies has a significant negative correlation with the audit opinion, that is, when the companies has a good capacity and profitability ability, CPAs prefer to issue a non-standard unqualified audit opinion.