Research On Political Connection Affect The Auditor Selection And Audit Opinion

Since the thirty years from the reform and opening, private enterprises of our county have been rapid growth. The private economy has become an important pillar of the national economy, affect the affiliation, growth and development of private enterprises. However, compared with the state-owned enterprises,the political context of private enterprises is relatively weak, so more and more private companies are looking for relationships with the government. Studies at home and abroad have shown that the existence of political connections has brought many benefits to companies.The paper selects A stock private enterprises as samples to study the existence of political connections affecting the auditor selection and audit opinion.Article total is divided into five parts, the first part is the writing background, significance, literature review at home and abroad, as well as writing methods and innovations included. The second part is the basic theory.First introduces the theory of political connections, then introduces the theory of auditor selection and audit opinion. The third part puts forward two hypotheses and analyzes the basic theory. The fourth part is the empirical research.First design variables, construct two basic models, screen sample data from 2011-2013, and then use the empirical method Logistic regression, analyze empirical results. The fifth part draws conclusions, makes recommendations accordingly.This article draws the following conclusions:(1)Private enterprises having political connections are more willing to choose the auditors having political connections; (2) The auditors having political connections are more willing to give the private enterprises having political connections a standard audit opinion. Conclusions drawn above provide reference value to market regulators conducting market regulating and investors making investment decisions. Market regulators need to pay more attention to the auditors selection, investors can not blindly believe the audit report when making investment decisions. The conclusions have a practical significance to private enterprises themselves. Private enterprise can also compare the conclusions of this paper when selecting auditors.