Research On Modified Audit Opinion Of Listed Company

In mature stock market, listed companies cannot disclose annual Financial Reports until they are audited by certified public accountants. In return, the audit opinions will influence the performance of listed companies in stock market. Research in modified audit opinions published to listed companies’annual Financial Reports is quite helpful to obtain information about industries, companies, or even specific details on the management’s credibility, which is pretty valuable to both market regulators and investors.Based on the data of modified audit opinions about listed companies’annual Financial Reports issued from2007to2012, this paper adopts normative method to thoroughly analysis the characteristics and causes of the issued modified audit opinions in six years since the new accounting standards and auditing implemented, by processing data and analysis statistics through multiple perspective. At last, aiming at the present situation of audit opinion in the capital market, the author gives some suggestions from three aspects:the regulatory, accounting firms and listed companies.