Analysis Of Relevance Between Internal Control Audit And Financial Report Audit Opinions Based On Our Nation’s A Stoct Market’s Empirical Statas From 2010 To 2013

Domestic and international capital markets experienced several financial fraud trials and hardships, demand for high quality information of rational market participants is enhanced. In the age full of complex information, as the communication link between financial information demanders and providers,Certified Public Accountants have to formate the final audit report on the audit business undertaking. Audit opinions is the most concise expression of the final audit report,so market participants are concerned about audit opinions.After ministry of finance of our nation firstly proposed the concept of internal control audit in 1996, Ministry of Finance, Securities Regulatory Commission, National Audit office,Banking Regulatory Commission and Insurance Regulatory Commission jointly introduced the basic standard for enterprise internal control in 2008 and internal Control Guidelines in 2010,with a series of internal control regulatory policies. As so far, the emerging field of the internal control audit developed from voluntary stage to mandatory stage. Modern auditing stepped in the new era of internal control audit and financial statements audit. Therefore, it is of practical significance to analyse the impact of internal control audit on the reliability of financial information.Currently, our nation’s and foreign scholars made a lot of research about the factors affecting audit opinions in a extensive and intensive-depth.Research about internal control audit are fruitful but empirical studies are very few, and there are very few studies on the impact of internal control audit on financial report audit opinions. Based on the perspective of internal control audit, this paper uses method of theoretical analysis and empirical research. By selecting voluntary disclosure stage and mandatory stage’s data from 2010 to 2013 as sample, respectively, voluntary internal control audit disclosure and mandatory internal control audit are regarded as two independent variables in the two models. Descriptive statistics, correlation and regression analysis are analyzed by making using of SPSS statistical software to examine the impact of internal control audit’s implementation on the financial statement audit opinions. The empirical results of regression analysis reveal that: In the voluntary disclosure stage, firms disclosuring internal control audit are more likely to receive standard financial statement audit opinion; In the mandatory disclosure stage,in contrast with firms disclosuring internal control audit, the impact of internal control audit on the financial report audit opinions is more significant for firms without disclosuring internal control audit. It reveals that in the case of laws and regulations protecting external information users uncomprehensivly and disclosure of information imperfectly, internal control firms with hign quality are initiative to make internal control audit disclosure, in order to distinguish with low quality firms. Meanwhile, listed firms enhance and improve their internal control voluntarily, inhibit manipulation of information disclosure management, improve firm’s financial situation, improve the quality of financial information, in case of Certified Public Accountants issuing a negative audit opinion on the financial statements that affecting firms negativly. Therefore, in the case of voluntary internal control audit information disclosure, disclosure of internal control audit can improve the quality of financial credibility, in the financial statement audit opinion to be standard. In another point, with the improvement of relevant laws and regulations, companies disclosuring internal control information to the market and users of information are required, enforced internal control audit policies promote firms to improve its internal control system and improve its quality of financial information, this jointly improve the capital market. That is the virtuous circle what policies want to achieve. This paper verifies that internal control audit achieves the expected effect, namely mandatory internal control audit companies can increase the probability of being issued a standard audit opinion. At the end of the paper, to make sure that our internal control audit market operate effective, suggestions are made from the perspectives of listed companies, accounting firms and regulatory organizations. Finally, state the limitations of the variable design and selection and pointe out the direction for further study.