Corporate Finances And Audit Quality Research

Through long-term development, the audit market has been increasingly improved in china. As a attestor of accounting information, The audit opinions expressed by CPA are concerned by the public more and more. For many users of financial reports, they are usually not involved in the experiences of enterprises management, coupled with limited expertise to identify quality of accounting information and the need for high costs, then they, how to judge the quality of corporate disclosure of financial information on the level of what? Certified Public Accountants, as independent third party, on the audit opinion on financial statements to investors naturally plays an important role in investment decisions. We can say that CPA affects all aspects of audit quality interests of users of accounting information affects the healthy development of securities markets affect the investment decisions of investors in general. When the corporate financial good health, there is no fraud motive that no financial statements for a cosmetic, in this case, naturally the quality of Certified Public Accountants audit also higher. However, when the financial situation of enterprises in extreme cases, the management for various reasons would like to gloss over the financial situation, also had the motive to purchase audit opinion, in this case, if the CPA and discovered the fraud and were disclosed, it shows the high quality of its audit. However, the current market is not the case, because the existence of unfair competition, accounting firms often for fear of losing customers to the company management to compromise, resulting in Certified Public Accountant and customer relations has been distorted, CPA may not be complete or completely failed to comply with the independent auditing standards, which can not be found free of material misstatement or omission of material misstatement may also find that non-disclosure, even for selfish, and management of the collusion, issued a fraud audit reports. So in the current market environment, how to judge the corporate disclosure of financial information is true and reliable? How to determine the level of audit quality then?Based on the above issues, this article is the financial situation of enterprises and audit quality evaluation metrics is theoretically analyzed. Then, Identified a total of 372 manufacturing industries in Shenzhen and Shanghai A-share listed company as a research sample, and use "correlation coefficient" filter out the operating margin, total assets of the net profit margin, inventory turnover, fixed asset turnover, current ratio, asset-liability ratio, capital accumulation rate, growth rate of total assets, net assets per share and earnings per share of 10 financial indicators as explanatory variables, regression to model more effective, has selected the listed number of years of audit opinions on the type of term of office and accounting firms audit the scale of four control variables. Finally, all independent variable multicollinearity tests, we found that the fixed asset turnover and inventory turnover, current ratio and debt ratio, earnings per share and net assets per share, the independence between the poor, so their conduct "alternatively" processing, the final set of profit margin, net interest total assets, inventory turnover, asset liability ratio, capital accumulation, total assets and earnings per share growth rate of 7 financial indicators, as well as listing the number of years, on the type of audit opinion, audit tenure and the size of the 4 accounting firms to establish linear regression model variables Analysis. Through empirical analysis reached the following conclusions:(1) financial status and excess rate of return correlation, but failed to pass certain financial measures t test; this may be due to the choice of financial indicators, data, chance fluctuation, sample selection, as well as other non-financial information business impact caused. (2) of audit opinions on the type of regression coefficient is significantly positive, indicating a non-standard audit opinions issued for listed companies, CAR higher, investors that its audit of high quality. Finally, explained the limitations of this study with the idea for further research.