Types Of Audit Opinions And Auditors' Discipline

In recent years,the listed companies' violations mount.False statement illegal violations of listed companies are not only the major types of violations,and false statements closely related to the auditor liability.Therefore,in the securities market violations concern at the same time audit supervision also attracted people's attention.In 2007,the Supreme People's Court of China promulgated the "Provisions on the Trial of Cases of Civil Tort Compensation in the Auditing Business Activities of Certified Public Accountants ",which clearly stipulated that the accounting firm and the person directly responsible were perpetrator of false statements.Under the laws and regulations of our country,auditors should to allow the auditee to correct,or make a qualified opinion when the false statements of listed companies.Otherwise,the auditor should jointly and severally liable to the false statements of the listed company.The type of audit opinion is the general opinion given by the auditor after the auditing work of the audited entity is completed.It is the important part that the users of the financial report focus on and reply on.From the China Securities Regulatory Commission's notice of the punishment of the auditors,most of the penalties are referred to the auditor did not publish the appropriate type of audit opinion;therefore the audit opinion type is closely related to auditor retribution.So,under the increasingly stringent regulatory environment,how can auditors diligently complete the audit work without being punished by the CSRC? Whether the issuance of modified opinion can reduce the responsibility of the auditors to avoid being punished? To solve these problems,this article studying.Based on the principal-agent theory,entrusted economic responsibility theory and deep pocket theory,this paper studies the relationship between audit supervision and auditor's discipline,as well as the relationship between audit accountability and audit opinion type,and puts forward the hypothesis of this paper.In view of the listed company false statements,the auditor modified audit opinion type can reduce the possibility of retribution and auditors modified audit opinion can reduce the degree of punishment.Through the 2001 to 2015 punishment notice issued by the China Securities Regulatory Commission on the false statements of listed companies and the same time the auditor's punishment notice as a sample source,access to 174 false statements of listed companies and 49 samples were auditors punished simultaneously.Because there is a continuous violation of the majority of listed companies,and not all the auditors of every illegal years to be punished,the continuous violations samples for processing into separate years independently.Based on the descriptive statistical analysis and group multiple regression analysis of the sample,the Logistic model and the OLS model,it is concluded that the negative correlation between the type of audit opinion and whether the auditor was punished,and the type of audit opinion was negatively correlated with the degree of punishment,consistent with the research hypothesis.In the case of listed companies with false statements,the auditor's modified audit opinion can reduce the possibility of retribution and reduce the degree of punishment.Further study the impact of policies and regulations on the relationship between the two variables,the results of group regression show that policies and regulations can promote the relationship between the audit opinion and discipline of auditors,that is,in the case of strict laws and regulations,the relationship between audit opinion type and auditor disciplinary the is more significant.This paper further refines the modified audit opinion type as a substitute variable for audit opinion,and uses the type of the punishment degree as a substitute variable for the degree of the auditor's punishment to robustness inspection,and the results are consistent.In this paper,the sample of listed companies with continuous irregularities is treated as a separate year,which not only solve the problem that not all the auditors be punished in the continuous violation also enriched the sample size to make the research results more reliable.The results of this paper clarify the essence of audit supervision;clear the responsibility of auditors,to supervise and urge the accounting firms to improve their impendence and supervise and urge the auditors to improve their ability to work diligently to complete the audit work better than before.At the same time,it proves the effect of policies and regulations on audit supervision from the perspective of empirical evidence,which provides a theoretical basis for supervising and perfecting audit supervision.