Tax Aggressiveness,Audit Industry Specialization And Audit Opinion

Enterprise tax arrangement is divided into tax savings behavior and tax avoidance behavior.Tax savings behavior is that taxpayers use legal means,such as policy skills,calculation analysis and accounting policy,in order to achieve the purpose of saving tax,embodying a variety of business arrangements in selection of the lowest tax scheme dealing with financial,trading and other matters.Compared to the legitimacy of tax behavior,the tax avoidance has not only illegality,referring to the use of the tax law imperfection,region or industry preferential terms to avoid or reduce the tax liability.Because in practice it is difficult to distinguish the boundaries of the both,so in the existing research,tax saving and tax avoidance are collectively referred to as the tax aggressiveness.Though tax aggressiveness can bring tax reduction and increase of cash flow and other benefits,but also with a lot of cost.Therefore,the enterprise' tax aggressiveness level mainly depends on the judgment of the decision makers to the costs and benefits of tax aggressiveness.Literature at home and abroad have made many studies to the influence factors of tax aggressiveness behavior of listed companies.However,the corporate tax radical behavior as a kind of agency problems,having certain cost and risk,it is bound to affect the listed company,having certain economic consequences.However,previous scholars research mainly concentrated on the influence factors of tax radical degree of listed companies,less research focusing on the economic consequences of a listed company tax activism.As an important element of external governance mechanism,certified public accountants audit in corporate governance have heavy responsibility.Tax aggressive behavior and corporate earnings management and earnings manipulation motivation usually relates in together,whether the certified public accountants in the audit process can perceive this information accurately,and adjust the nature,time and scope of the audit procedures accordingly?When issuing the audit report,will the certified public accountants consider the effect of tax aggressive behavior of listed companies?In particular,which kind of relationship exists between listed companies tax radical activity and audit opinion,the final results of certified public accountants verification work?The tax aggressive behavior of listed companies often involves income and cost measuring,definition of trading hours or capital structure adjustment,so this will increase the difficulty of the audit and audit failure probability undoubtedly.Whether the auditor with industry expertise is more able to identify customer's earnings management and earnings manipulation behind tax radical behavior,and then choose to evade the audit risk,and issue a unmodified audit opinion?The objective answer from theory field is needed.Therefore,this paper takes a-share non-financial listed companies from 2007 to 2014 in our country as samples,combining specification and empirical method to study the above problems.This paper firstly review the existing research results,in order to more accurately grasp the research status;Secondly,combining with the related basic theory,make logic analysis,with the purpose of proposing corresponding hypotheses of this article studies the problem;Thirdly,build the model to test the hypothesis empirically,and analyzes the empirical test results;Finally,reach a research conclusion and corresponding lesson.In this paper,the study finds that the higher the degree of tax aggressiveness of listed companies,the greater the chance of obtaining unmodified audit opinions;When the accounting firm has the high industry expertise,the probability of issuing unmodified audit opinions to the high degree tax aggressiveness listed companies is higher.The research results show that the tax aggressive behaviors of listed companies hide earnings management or earnings manipulation,to whitewash or distort the company's operating performance.However,the accounting firm is able to perceive and identify the information contained in the tax radical behavior,and when issue the audit opinion,they will take the tax radical behavior into full consideration;No matter from the aspects of professional competence,or the accounting firm reputation,certified public accountants with higher audit industry expertise are likely to issue unmodified audit opinions to the customer with tax radical behavior.From this research,we can get some enlightenment:The listed company' tax radical actions contain complex information,so relevant departments should attach importance to the economic consequences of corporate tax radical behavior;To strengthen the check supervision and penalties to enterprises tax activism;Audit firms should focus on the customer's tax aggressive behavior;To actively cultivate large and medium-sized accounting firms,training audit firm industry expertise,to improve the quality of the audit firm's practice.