An Empirical Study On The Influence Of Listed Companies’ Financial Restatement And Audit Opinion

Since the1990s, the phenomenon of financial restatements is becoming increasing in listed companies. This means that a growing number of listed companies may exist earnings management. The financial restatements of a listed company has not only harmed the interests of the shareholders, enhanced the company’s capital costs, increased the company’s financial risk, but also conveyed bad signal to the market and caused a significant adverse impact to the company and shareholders. The audit opinion is the characterization of audit quality. It is essential to the users of financial statements. And the study of the relationship between the financial restatements and audit opinion is helpful to the users of financial statements, this can give a more accurate understanding of statements of the information contained in the financial statements.This article is based on listed company, and collects data of these companies from2006to2008listed on the Shanghai Stock Exchange. It is to collect the information of the financial report corrections and supplementary announcements. And then proposed to assume a. This is using Logistic model to constitute the relationship between financial restatement of listed companies and audit opinions. Then divide these companies into two parts, if the changes related to the changes of managers, the minor format changes of the financial statements, the subtle changes of meetings to disclose the results, the changes to the outcome of the discussions, as well as to a small vocabulary errors or typographical errors, it is not a financial restatement. On this basis, continue to study the impact of the financial restatement of various factors on audit opinion. I will be divided it into two time periods. For each time period, we make the regression analysis through the logistic model. It is in an attempt to reveal the factors of the two financial statements during the audit opinion. This study attempts to reveal the relationship between the financial restatement and the audit opinion of the listed companies.There are two innovations of this paper: first, it uses a more comprehensive perspective, this study is based on the issues that financial restatements affect the audit opinion and what aspects of it affect the audit opinion. This article uses these two aspects to study the relationship between the financial restatement and the audit opinion. The design of the research model is divided into two parts, the first part is the accounting error and the second part is audit opinion in the year when accounting error occurs. Previous studies have tended to confuse the two periods and thought that the two periods of financial restatement factor is identical to the audit opinion. Furthermore, this article adopted a new scope of the study, in this paper, to collect the relevant data of China’s Shanghai Stock Exchange A-share listed companies from2008to2010, to study the correlation between the new samples.