Going Concern Uncertainty Auditing Opinions, Executives Turnover And Their Following Influence

We take2007-2009listed companies that got going concern uncertainty auditopinion as samples, to study the relations between getting going concern uncertaintyaudit opinion and top executive turnover in a company, and to test the efficiency ofinternal governance in these companies. The results show that top executive turnoverin a company that got going concern uncertainty audit opinion is more frequent, thatis to say these companies are tend to change executive to achieve self-recovery. Then,we build the Logitc regression model to examine the correlation between topexecutive turnover and improvement of the financial crisis, the conclusion is that topexecutive turnover can not make positive influence to improvement of the financialcrisis in the first year, but play a role in the second year. To further prove efficiency oftop executive turnover, we divide the listed companies that got going concernuncertainty audit opinion into two groups. Certified Public Accountants the topexecutive turnover has no obvious improvement in first group, but obviousimprovement to audit opinion in the second group. Our innovation is differing thegoing concern audit opinion from the nonstandard audit opinion. Financial crisis doesnot improve in the first year after top executive turnover, but does improve in thesecond year. What’s more, audit opinion improves after top executive turnover, thisshows that the change of corporate executives is efficiency, so top executive turnovercan be a way of continuing operations of a non-standard audit opinions listedcompanies to improve.