Research On The Influencing Factors Of Non-standard Auditing Opinions Of Listed Companies

As the body of security market,investors should treat different non-standard opinions correctly,find out the reasons and make different decisions according to different conditions.Especial,non-standard audit opinions are paid more and more attention by supervision departments,academy and vast investors.Thus,the research on the influence factors of non-standard audit opinions issued by Certified Public Accountant(CPA)has always been the significant subject.In the new economic transition period,both subject and object and the information environment of audit behavior have changed,how they affect non-standard audit opinions is also changing correspondingly.So,the article carried an empirical study on the determinants of the audit opinions of listed companies in the new environment.The purposes are following: firstly,to measure the level of practice of CPA in the current security market in China.Second,to re-calibrate the different conclusions of relevant studies from previous scholars about the accounting firms,listed companies,audit information and so on.Third,through further research,to conclude how the listed companies,accounting firms and audit information environment factors are influential in non-standard audit opinions.Based on the research conclusion,to table a proposal of improving the level of corporate governance,promoting the development of certified public accountants,and improving the system of audit pricing and supervising.Based on the data of listed companies from 2011 to 2014 and theoretical analysis,the paper set variables of influencing factors,and built the factor analysis mode.Using the k-means clustering algorithm,this paper studies the influencing factors of non-standard audit opinions,such as listed companies,accounting firms and audit information environment.And in the process of building the indexes,this paper chooses the analyst attention as an alternative indicator,at the same time,it builds the scale of accounting firms,audit fees,scales,financial status and the governance structure of listed companies which is the whole 19 primitive indexes.The empirical part makes a reducing dimension process on indexes through factor analysis.Through the mathematical analysis of the variation coefficient and the mean value of the original indexes,the conclusion is obtained.The results show that: firstly,there is a significant negative correlation between audit fees and audit firms.The scale difference of audit firms has been formed in China’s audit market,and there are significant differences between them in the level on the audit risk management.This also leads to the expectation that the listed companies are going to get non-standard audit opinions tend to seek relatively lax audit firms,and even purchase the audit opinions.The second,from the perspective of corporate governance,the proportion of independent directors and the ten largest shareholders have a positive impact on the non-standard audit opinions.In other words,the independent director system has played an expected role,and the high ownership concentration has a good applicability to listed companies in China.Thirdly,after analyzing the analyst’s attention as an alternative indicator of the audit information environment,it is found that the analyst’s follow-up reduces the probability on non-standard audit opinions.Fourthly,unlike most scholars’ conclusions,there is no evidence that the financial situation and the scale of listed companies are significantly correlated with the non-standard audit opinion.But the small size and poor financial situation will increase the probability of the listed companies to obtain non-standard audit opinions.This may be due to the implementation of the delisting system,poor operating conditions of listed companies will have a stronger motivation to seek changes in the audit opinions through irregular business,thus,their business risk will increase.Similarly,the empirical analysis shows that the smaller the scale of a listed company,the more operating risks,so the auditor will tend to issue non-standard audit opinion.The CPA keeps the principle of prudence and independence well.The innovations of this paper are as follows: firstly,the paper breaks through the traditional linear regression and chooses the clustering algorithm to study the influence factors of non-standard audit opinions.Secondly,the paper selects the popular analyst’s attention as an alternative indicator of audit information environment,which enriches the theoretic basis of audit research.It is an effective way to promote the further development of the audit industry by improve the governance level,optimize the audit service environment and perfect the audit supervision mechanism.At the same time,the differences between audit firms also tell us to encourage small and medium sized audit firms really being bigger and stronger,through the demonstration base construction of audit firms and other measures.At last,the paper puts forward some suggestions on how to increase the audit risk,to put an end to the "opinion shopping",by giving CPA the status of the insurer.We hope to contribute to achieve the 13 th Five-Year plan on promoting the development of the CPA industry,and take an active part in national construction.