Listed Companies' Financial Indicators And The Type Of Audit Opinion

The type of audit report of the list company is highly regarded by all kinds of outsiders, and may have important effects on their decision behaviors. Therefore it has strong theoretical and empirical implications to predict the type of audit report of the list company by some appropriate ways. This paper is tree out of "the independent audit rule -going operating" originated by the Financial Ministry .The aim of this article is that we want to know if the financial condition and business performance has important effects on the audit opinion .At first this article will test whether there is any deference exist between the financial indicator of the standard qualified companies and the standard unqualified companies. Then by establishing the Logistic model, this paper defines the financial variables reflecting the financial conditions and business performance of the list company as the independent invariables, and chooses the variable reflecting whether a list company has received the standard unqualified opinion about it's financial report as the dependent invariable. At last, on the basis of the empirical research concerning the relationship of these tow type invariables , this article determines whether the relativity exists between them and establishes the prediction model about the type of audit report of the list company. The conclusion is that the financial conditions and business performance of a company has important effects on it's received audit opinion type.