The Research Of The Correlation Of The Earnings Management And Auditing Opinion

An empirical study of earnings management originated in the West, however, with China’s rapid economic development, study on earnings management in China’s capital market environment causes the research interests of many scholars, earnings management due to the use of legal loopholes in the regulations and its selective regulation of surplus, this appears to be legitimate and no doubt,but for statement users who rely on corporate financial statements to obtain information, it seems extremely unreasonable. The financial statements of the meaning of existence is the true and fair view of the users of financial statements reflect the financial position, results of operations and its cash flows, but the use of earnings management behavior to gloss over the financial statements in order to meet the listed companies, placement and other private purposes, this will inevitably lead to the existence of water in the financial statements, the financial statements of the information conveyed to the users of financial statements does not reflect the true state of a true and fair. Because most of the users of financial statements in outside the enterprise, they can not identify whether a company use the earnings management behavior, so they want an external supervisor-Certified Public Accountants can help them identify the earnings management behavior, which put forward a certified public accountant be able to identify the purpose of the study of the behavior of earnings management. Taking into account the different sectors of their own operational and environmental characteristics, it will inevitably lead to different effects of earnings management behavior for certified public accountants to identify listed companies, therefore it proposes to vary for different industries listed companies, CPA sensitivity of earnings management research point of view.This paper focuses on the research point of view put forward by previous scholars of the audit opinions and earnings management literature, and earnings management motives, means are re-theoretical analysis, it will lay a solid theoretical basis for the study. This paper selects the Shanghai and Shenzhen listed company in2010as a research sample, with the use of empirical methods to analyse audit opinions and earnings management in order to come to the certified public accountant to a certain extent, to identify listed companies, while introducing relevant control variables in order to observe these factors on audit opinion.In conclusion, the article describes the limitations of this article, combined with our current capital market conditions, laws and regulations of the integrity and professional ability of the Certified Public Accountant of the policies and proposals in favor of Certified Public Accountants are better able to identify listed companies earnings management behaviors.