Correlation Studies Between Financial Restatements And Certified Public Accountants Audit

With the vigorous development of the capital market, China's listed company information disclosure system have been gradually improved and is making the convergence with the international capital market, so the quality of financial accounting information disclosure is wide attention of all social sectors. However, at present the information disclosure of the listed company still far from reaching the public's expectation, every year there are lots of the correct adjustment to early history financial report, main show is back adjustment to the existed accounting errors,major omissions or other misleading information, that is what referred in this article "financial restatements". The existence of financial restatement phenomenon not only shows the low financial disclosure quality; it also brings a certain economic consequences to the capital market and the interested parties. Based on this background, this article attempts from the perspective of the audit, to discusses whether "certified public accountants audit"(As an external force of the supervision which is not allowed to neglect in a ring) and "financial restatements" have certain intrinsic relationship, with the hope that research results to be able to provide certain basis for better role playing of audit supervision, and provide a power for regulating listed companies' restatement behavior.On the basis of both at local and abroad related studies, and through the related theory of both "financial restatements" and "certified public accountants audit", this paper start from the present situation of financial restatements, analysis and construct an overall correlation for the financial restatement with the audit goal, the audit risk, and the audit quality; on the other hand, with "the audit opinion" which reflect the comprehensive index registered public accounting audit as a starting point, put forward for financial restatement company, present the concrete correlation hypothesis of the audit opinion with restatement degree,with audit fee,with audit switch,with the firm scale, then use Excel statistical analysis,descriptive statistics analysis and Logistic regression analysis as empirical research method, tested and verified the selected95research samples (restatement companies disclosed in2009-2010year, Shanghai A-share).The empirical results show as:For financial restatement companies, the no-standard audit opinion with restatement degree,and audit switch and ST motive are positively related, proved that for restatement companies, CPA could focus on the major restated by the virtue of the risk, and the hidden risks come from audit switch or ST company, and in the end could reflect the risk to the no-standard audit opinions; however, for the null hypothesis of no-standard audit opinions with the audit scale (strength),the audit fee,the unit business complexity have positive correlation are not test established, this paper made further possible analysis for these results. Finally, combined with financial status and empirical research restatement of the conclusion, thereafter puts forward relevant suggestions.