Study Of Audit Opinion Of Annual Report Of Listed Companies In China

Up to December 31,2008, the number of listed companies in China reached 1625. With the development and improvement of the securities market, the number of listed companies will continue to climb. If the financial report which reflected the listed company's financial position and operating results is objective and fair, we need to recourse to CPA.CPA audit opinions issued by high quality is already a focus of concern at home and abroad, is also the starting point of this paper.In this paper, audit opinion of listed companies in China is as a fundamental. It starts first by statistical method, analyzes and summarizes the statistical characteristics and changing trend of the audit opinion over the years. And then, it summarizes characteristics of the distribution of audit opinions and the rule of the trends of policy volatility. The distribution of the industry of audit opinion indicates that the industry type have an impact on the type of audit opinion. According to this characteristics and related literature did not consider the of industry factors, the paper selects manufacturing companies for the study sample, in order to exclude the impact on the audit opinion of industry factors. Compared with the sample companies of 2004-2005 and 2007-2008 which were before and after the new guidelines, it uses Logistic regression model to analyze the main factors which impact on the types of audit and the changes during the 4 years. It comes to conclusion that the possible impact on the audit opinion of listed which was caused by the promulgation of new guidelines.The results show that:the size of accounting firms, the fee of audit, the company's governance and financial characteristics etc. significantly affect the type of audit opinion. Before and after the new guidelines, the factors that affect the audit opinion have changed. It means new guidelines affect the audit market to some extent. On one hand, the conclusion of this paper directs for the enterprises to strengthen management and higher quality financial reports; on the other hand, it can find current situation of audit implementation of CPA and remind the CPA's attention on the relevant factors. It can provide basis to enhance audit independence and to improve the practice of audit quality. The ultimate goal is to provide theoretical basis of decision-making for authority, securities regulators and investors.