Going Concern Uncertainty Audit Opinion On The Effectiveness Of Research

Because of the economy is changing, the corporate must give more attention the risk. Because of the economy is changing, people can not understand or grasp the other areas of knowledge. These prompted the birth of professionals, and they would give the report to help the person who did not understand the message known the situation. The law has also been constantly revised and improved to make up the gap which caused by economic change. The going-concern audit standards first were promulgated in 1999, after that time it was revised twice and recently also is modified. These changes are designed to meet public needs and to meet the economic development. On the uncertainty of the situation, going concern opinion came into being. In this paper, in order to illustrate the uncertainty of going concern opinion on the effectiveness, we used empirical research and case studies to study the going concern opinion which predict financial distress.In this study, we use the 2007-2009 sample these companies meet financial difficulties. In order to illustrate the effectiveness of going concern opinion, we investigated the company which was given by going concern opinion what can predict the financial risk. Correlation and regression analysis have shown that the uncertainty of a going concern opinion on the financial distress could predict, and the current financial difficulties the company's audit opinion better than the previous audit opinion on the financial plight of prediction, which indicates that the going concern uncertainty the effectiveness of the audit opinion. Reputable accounting firm and the audit opinion of financial difficulties can better predict, correlation analysis the conclusion is yes, Logistic regression model due to multi-co linearity problem can not verify this assertion, the model needs further amendment needs further study.By analyzing the cases and then to further empirical analysis confirms the conclusions drawn:Certified Public Accountants issued a going concern audit opinion of uncertainty in terms of stakeholders is a utility; going concern uncertainty is also able to predict the audit opinion out of financial trouble, or to alert stakeholders concerned about the financial situation of the crisis. This explains the uncertainty of a going concern opinion has its own utility to meet the needs of stakeholders.Going concern opinion can predict the uncertainty of financial distress, it is a going concern opinion on the uncertainty of the information content of the release of their effectiveness.