The Annual Report Of Listed Company Information Content Of Audit Research

About information content of auditing opinion, the research has a history of almost40years in the west, though it has not reached an agreement, it also has acquired someachievements. While in China, although the securities market started later, with thedevelopment and improvement of securities market and audit system, that auditing opinionhad information content has becoming more significant. After the ‘Chinese CPA PracticeStandards’ was implemented in2007and the global financial crisis in2008, this paperstudies on that whether the audit opinion of2009and2010could have an impact on theinvestors decision-making and have the information content.In this paper, a combination method of normative analysis and empirical study is used.First, the normative analysis from the separation of ownership and management rights tothe principal-agent theory, then to the information asymmetry, leads to the importance ofinformation of accounting and auditing. As our market has not reach the semi-strong formefficient market, the investors would become too optimistic or too pessimistic to overbuyor oversell the stock because of the occurrence of an event, leading to abnormal stock pricefluctuation. So from the normative analysis, we can derive that the non-standard auditingopinion would have a negative impact on the securities market. Second, this paper uses theabnormal return model and multi-regression model to research on the relationship betweenauditing opinion and abnormal stock volatility of A-share listed companies in2009and2010. The empirical study conclusion is in2009the non-standard auditing opinion had anegative impact on the securities market, and the non-standard auditing opinion and thestandard auditing opinion had the marked different impacts; while the outcomes were notso significant as they were in2009, in2010the non-standard auditing opinion also had anegative impact on the securities market, and the non-standard auditing opinion and thestandard auditing opinion also had the different impacts.At last, this paper comes up with some policy recommendations respectively fromthree aspects, one is the securities regulatory system level, one is the aspect ofstrengthening the supervision of CPA, the CPA follow-up education and the CPA legalresponsibility, another is to enhance securities investors education.