The Impact Of Internal Control Report Opinions On Audit Opinions

Since the reform and opening up,China's securities market has developed rapidly but is still not perfect.Currently,it does not have mature investors at a certain-level.Various systems such as stock issuance,asset prices,and information disclosure need to be constantly revised,so as a way to solve or curb the integrity crisis.The auditing opinions of the third-party intermediary accounting firms were closely watched by the company itself,government regulators,and investors.China began trialing internal control audit opinions in 2011,and compared with the auditing opinions of the financial statements.The control audit is to express opinions on the internal control process,and the financial statement audit is to express opinions on whether the financial statements are prepared in accordance with the pre-paration basis in all major aspects.One is a processoriented and one focuses on the results.The quality of the process often affects the outcome.The influencing factors related to internal control audit opinions are topics that are of great concern to academics and practitioners.In the study of the factors affecting the internal control of audit opinions,man y scholars directly derived the results of internal control audit opinion from the influencing factors.However,in 2011,China began to pilot internal control audits.During the period of non-enforced internal control audits,most Listed companies do not report their good news,they have few samples and they are not representative.These factors that affect the audit opinion of internal control are often not the characteristics shown by the major defects of internal control.Therefore,they are not referential and they are in the process of enforcing internal control.After the audit,the number of samples began to increase,and the disclosure format was gradually standardized and unified,which laid the foundation for the study of this article.This article also further studied in-depth which of these internal control companies have major flaws in the company,which factors affect the audit opinion of the financial statements.Based on this,this article first reviews the relevant literature on the influencing factors of internal control audit opinion at home and abroad,the influencing factors of the audit opinion of the financial statements,and the impact of significant internal control defects on the audit opinion of the financial statements.On the basis of summarizing the logical thinking,relevant hypotheses were put forward,and two models were designed to perform empirical regression research on related hypotheses.47 companies that selected the 20112016 internal control audit opinion were negatively or could not express opinions were selected as the study.Subjects and 47 control samples were selected according to the three standards that were in the same four-level subdivision industry and total asset size and there were no major defects in internal control.In the first model,the impact model was studied through an empirical model.In the second model,the factors that control the audit opinion are to further study in which of these companies with significant internal control deficiencies affect the audit opinions of the financial statements.The results of the study show that:(1)The lower the return on total assets and the smaller the risk of internal control,the greater the probability that nonunreserved internal c?ontrol audit opinions will be issued;(2)Total assets gains in companies with significant internal control deficiencies The lower the rate,the greater the risk of internal control,and the greater the probability of material misstatements in the financial statements caused by major defects in internal control,the greater the probability of being issued audit opinions on nonunreserved financial statements;(3)Major flaws in internal control In the company,the larger the firm's size and the stronger its independence,the more the auditor will maintain professional prudence and professional skepticism.The better the audit quality,the greater the probability that auditors will be issued audit statements with nonunreserved financial statements.Finally,based on empirical research results,three conclusions are drawn,and the limitations of this article in empirical research are proposed to facilitate later scholars to conduct in-depth research and give relevant suggestions for conclusions.