The Company Risk,Executive Compensation Incentive And Audit Opinion

Agency conflict problem which caused by two rights separation has always been the hot spot of the theory and practice research problem.The external audit and company executive incentive both are designced to reduce the agency conflict iin the first place.With the development of the risk-oriented audit mode,certified public accountants take more and more attention of the company risk factors when expressing an opinion.Through the summary of literature at home and abroad,we find that legal risk,financial risk,operational risk are typical risk factors of the company's risk factors.So in this paper,we will explore the relationship between the three kinds of risk factors and audit opinion.In addition,executive incentive also can reduce agency coinflicts and replace some role of external audit.Executive compensation incentive is the most common way of executive incentive,so this article studies the relationship between the executive compensation inccentive and the auditing opinion and explores when the risk factors joining the company,whether the relationship will clhange.This article first reviewed the domestic and foreign research results on the relationship among the company's risk,executive compensation incentive and the audit opinions.And then according to the relatced theoretical basis,we put forward three researclh hypotheses.This article used 2013-2015 Shanghai and Shenzhen A-share listced companies as the research samples,and explored the relationship among the company's risk,executive compensation incentive and the audit opinions.Regression analysis and grouping enmpirical research were conducted in the article.According to the research,substituton variables robustness tests were conducted in the article at last.Throuuh the cmpirical study and robustness test,this paper concluded that if the company has a higher level of risk factors,it will be more possible to get a non-standard audit opinion.And financial risk has the largest influence,then the operating risk,legal risk in third place.If the company thas a higher level of executive compensation incentive,it will be more possible to get a standard audit opinion,especially when the company's executive compensation incentive level is lower than the market average.But joining with the company risk factors,the above relationship will become weaker.This paper innovatively study the external auditing opinion and internal executive compensation incentive together to enrich the literature.Finally,the airticle put forward some reasonable suggestions for the listed company to perfect the risk management system and salary incentive system.At the same time,the article providecd some reasonable suggestions for certified public accountants to express audit opinion and improxve audit quality.