Influence Of Internal Control Weakness On Audit Opinion Of Financial Report

Audit opinion of financial report which is an important basis for investors and creditors to make decisions and judgments, has always been concerned. The listed companies received modified audit opinions would not only combat the confidence of investors, but also draw the attention of regulators, which take a serious negative impact on the companies. Therefore, how to get a better type of audit opinion of financial report is an urgent problem in the listed companies.Since 2012, as the listed companies of Shanghai and Shenzhen stock markets have began to enforce internal control system, the disclosure of internal control weaknesses is like a lamp, provide more information for the scholars to study the internal control of the listed companies. This article embarks from the internal control weaknesses, around the issue "influence of internal control weaknesses on audit opinions of financial report", focusing on the influence of internal control weaknesses on modified audit opinions of the audit opinions of financial report. Firstly, after a review of overseas and domestic related literature, combined with relevant theoretics, analyzed the influence mechanism of this paper, made a foreshadowing for the further research. Secondly, with A-share listed companies of Shanghai and Shenzhen stock markets from 2012 to 2014 as the research object, conducted two aspects of inspection from the empirical perspective, one was testing the correlation between internal control weaknesses and the modified audit opinion, the other was testing the correlation between different types of internal control weaknesses and all types of modified audit opinion, the results showed that the internal control weaknesses were positively correlated with modified audit opinions of financial report; Internal control material weaknesses were positively correlated with all types of modified audit opinions; Internal control significant weaknesses were positively correlated with unqualified audit opinion with explanatory notes and qualified opinion; Internal control general weaknesses had no correlation with all types of modified audit opinions. Thirdly, through the study of WJ representative case company, further interpreted the influence of internal control weaknesses on audit opinions, had a certain realistic directive significance for helping listed companies to improve the internal control system and receive a better type of audit opinion of financial report. Finally, summarized the whole paper, drew the conclusion of this article and put forward recommendations.