An Empirical Study On Impact Of Going-concern Uncertainties And Its Industry Differences Upon Audit Opinion

Owing to the market competition increasingly intensifying, so the enterprise’spotential uncertainty of ability to going-on is increasing ceaselessly as to cause theuse of going-concern assumption challenged. At the same time, different enterprisesare in different industry background, there are differences about the capacity ofgoing-concern between different enterprises because of the industry differences. Butthe CPA auditing is on base of statements, if CPA failed to detect the going-concernproblem, it will lead to increase audit risk. Therefore, to assess the reasonable of theaudited units’ going-concern assumption and issue reasonable audit opinion, it helpsto reduce the audit risk so as to supply subsidiary information for CPA auditing.In this paper, we mainly studied on the financial characteristics that can reflectall aspects of enterprise information to analyze going-concern uncertinty.Weexpanded the meaning of financial characteristics to financial ratios for itself,financial changing-ratio and industry standardization rate. Firstly, we analyzed theimpact of financial characteristics of going-concern uncertainty and its industrydifferences upon audit opinion in theory.And we focused on the going concernuncertainty financial characteristics and its effects to audit opinions in the housingindustry, manufacturing industry and information technology industry.Then, weselected the listed companies that involved ongoing problem from2003to2010inShanghai and Shenzhen as research sample, established going-concern opinion modeland established models about housing industry, manufacturing industry andinformation technology industry separately through descriptive statistics,nonparametric tests and logistic regression analysis. The results showing that, ingoing-concern audit, the changing rate of asset indebted rate, changing-rate of netinterest of total assets and changing-rate of financial leverage, industrystandardization rate of flow ratio and industry standardization rate of operatingleverage have impact on going-concern opinion in this paper;The audited units thatare in different industries, there are significantly different in ability ofgoing-concern.Finally, we suggested to strengthen the CPA firm industryspecialization and the analysis of key financial ratios.