The Influence Of Financial Restatement On The Types Of Audit Opinion

In recent years,the problem of financial restatement caused extensive concern of the regulators,the cases of administrative punishment of regulatory authorities for accounting firms is increasing on account of financial restatement,such as ernst&young,reanda cpas certified public accountants have had similar experiences.The research shows that not only the error occurrence period but also restatement of current has a higher risk of material misstatement.So,in the current period restatement,whether the accounting firm can identify the restatement risk of material misstatement of the enterprise,and reflected on the issue of audit opinion type?In addition,the different internal causes of the restatement,the different sponsors,caused by the different of economic consequences,which brings to the accounting firm also has different degree of risk.Through literature review,there is few study that consider the matter of the audit opinion on the type of audit opinion from the internal reason and the sponsor's view,almost no literature to study the problem from the perspective of the promoters.Then would the internal reasons,the restatement of the sponsor affect the type of audit opinion issued by the accounting firm to the enterprise?This paper tries to answer the above questions through the combination of theoretical research and empirical research.In theory,it understands that the restatement enterprise has the high material misstatement in the current restatement combing the relevant literature,the internal reasons,different promoters,will make the restatement enterprises exist the risk of material misstatement in different.And accounting firms in order to avoid their own risk,will issue a non-standard audit opinion to the higher customer,and the higher the audit risk,the higher the probability of issuing non-standard audit opinion.This paper put forward a hypothesis:accounting firms tend to be more in the current corporate restatements issued non-standard audit opinions,not only that,the reasons for the repeated events and the sponsors are different,the possibility of a non standard audit opinion issued by the enterprise is different.In the acquisition of financial statements related to the data,the paper divided the financial restatement internal reason into management earnings manipulation,internal control defects non reason of enterprises based on the previous study and through analysis,judgment,statistics on the contents of the notice issued by the company with "accounting errors correction";from the perspective of the promoters,the restatement is divided into active and passive restatements restated.The results show that the number of financial restatement caused by internal control deficiencies in 2011-2015 China A shares of listed companies are most,accounting for about 55%,and by the management of earnings restatements of enterprises due to the risk of material misstatement is highest;in promoters respects,the number of active weight slightly more than passive restatement of the enterprise.However,the risk of material misstatement of passive restatement firms than the risk of material misstatement in active restatement of enterprises.This paper combines the descriptive analysis,correlation analysis and contingency table analysis,Logistic regression analysis and others to study the types of audit opinions on accounting firms based on the 2011-2015 China's A-share listed companies as a sample of the empirical research.The results show that accounting firms are more likely to repeat the current audit clients issued non-standard audit opinions compared with the enterprise without the financial restatement,the possibility accounting firm issued non-standard audit opinions are difference due to the difference restatement of the inherent causes and the sponsor.Specifically,the accounting firms are more likely to issued non-standard audit opinions to manipulate earnings restatement class customers,there has no significant correlation between the type of audit opinion and restatement caused by defects of internal control and the nonfinancial statements.The accounting firms are more inclined to issue non-standard audit opinions to the enterprises in the promoters,The influence of the active repeat on the audit opinion type published by the accounting firm is not significant.In general,it is more concerned about that accounting firms to the restatement and the passive repetition caused by the management of earnings manipulation,and it is more likely to issue non-standard audit opinions.The results show that the accounting firms can recognize and respond to material misstatement risk of the restate enterprise,and as an external governance institution accounting,it played a supervision role on the restatement of financial statements.This paper provides empirical evidence for accounting firms to different internal causes and the originator restatement of the enterprise issued by the possibility of non-standard audit opinion,and this paper helps to remind investors and accounting firm pay attention to the intrinsic reasons and sponsors of restatement to understand the risk of repeat item properties and develop coping strategies.