A Study On The Relationship Between Audit Opinion And Earnings Management

Nowadays the study of the definition of audit quality has a new tendency. Before academicians definited audit quality in the aspect of CPA. And now they’d like to definite audit quality in the aspect of uses of the reports. The development of the definition of audit quality needs scholars to study how to measure audit quality accordingly. Meanwhile Stock Listing Rules has been seventh revised. Its influence to cancellation of ST needs scholars to study deeply. So according to the Jones Model and DuPont analysis theory, this paper improved measure methods to audit quality to study firms except ST firms in china’s A-share market, and found that it’s partial to measure audit quality only with the relationship of audit opinion and earning management, and further found that the authenticity of ability to obtain profits was more important for audit opinion than the authenticity of obtain profits. The discovery illustrated that CPA’d like weigh benefits and risks. In addition, comparing audit quality of firms of cancellation of ST in 2014 to audit quality of normal firms consistently, In this paper, and we put forward a proposal for further accounting firms and certified public accountants, listed companies, policy-makers and regulators as well as investors.