Analysis Of The Audit Opinion Purchase Case Of "ST Kunming Machine" Company

At present,our external audit market is imperfect.On the one hand,the external audit demand of listed companies is largely due to the mandatory requirements of the government regulatory authorities,rather than their own development needs.Moreover,due to the ubiquitous internal control problems of listed companies,the auditing principal and the auditee become the same,so the independence of external audit is greatly weakened.On the other hand,because the social audit industry is in the buyer's market,the accounting firm is under a lot of pressure,which would agree with the company driven by profit.At present,the performance of the management of most of the listed companies in China is related to the company's business condition.When the company's business performance is not good,the management of the listed company has the motivation to whitewash the financial statements.As is known to all,audit reports of listed companies are an important guarantee to prove the authenticity and fairness of their financial information.Users of accounting information will make relevant investment decisions according to the types of audit opinions.The main contents of this paper are as follows:The first part is the introduction,which mainly introduces the research background,significance,research ideas and methods of the paper.Meanwhile,the research on audit opinion purchase is reviewed in the literature,and the overall framework of the paper is proposed.The second part is the theoretical overview of the purchase of audit opinions of listed companies,which is the theoretical part of this paper.It mainly includes the concept of audit opinion purchase,the reasons for the purchase of audit opinions,the implementation mode of audit opinion purchase and the theoretical analysis of the purchase of audit opinions.The reasons for the purchase of audit opinions mainly include the variation of audit relations leading to the purchase of audit opinions;The incentive mechanism linked to the company's financial performance and share price provides the motivation for the audit collusion of the management.The market pressure of listed companies has led to the purchase of audit opinions;The lack of supervision by government regulators makes it easier for listed companies to buy audit opinions.An accounting firm leads an audit opinion to buy five points.The implementation of the audit opinion purchase mainly changes the accounting firm and increases the audit fee.Theoretical analysis mainly includes principal-agent theory,accounting rent-seeking theory,auditing rent-seeking theory and property right theory.The third part is the case introduction of the "ST kun machine" audit opinion purchase,which is the introduction part of this article.This paper mainly introduces the basic situation of "ST kun machine","ST kun machine" audit opinion purchase process and the result of "ST kun machine" audit opinion purchase.The basic situation of the "ST kun machine" is mainly from the history of the company,the business situation and the financial situation.The "ST kun machine" audit opinion purchase process mainly includes the "ST kun machine" operating performance is not good,the reputation of the capital market is declining;To purchase the audit opinions of KPMG by increasing the audit fee;Through the dismissal of KPMG,hiring ruihua accountants to purchase the audit opinion three stages.The results of the "ST kun machine" audit opinion purchase are exposed by the purchase of the audit opinion of "ST kun machine",which is suspended from the market and then launched self-examination to retroactively adjust the previous annual financial statements.The fourth part is to analyze the reason and realization of the audit opinion of "ST kun machine".The main focus is on the reason of the "ST kun machine" audit opinion purchase and the implementation mode.The reason for the audit opinion purchase of the "ST kun machine" is that the integration of the auditor and the client leads to the management to exert pressure on the auditor.The "ST kun machine" operating performance is not good,facing the pressure of declining reputation in the capital market;The "ST kun machine" four years of continuous losses,facing the pressure to delist;The incentive mechanism linked to the financial performance of the company makes the management of the "ST kun machine" conduct audit opinion purchase;Lax regulation of government regulators allowed the "ST kun machine" to buy audit opinions.The "ST kunming machine" audit opinion purchase implementation method includes the change of accounting firms and the increase of audit fees.The fifth part is the research conclusion and revelation.The study concludes that the "ST kunming machine" implements audit advice by increasing audit fees and changing accounting firms."ST kun" is trying to recover its reputation in the capital market through audit opinion purchase,avoiding the risk of delisting.The study reveals that the merger of the auditor and the client makes the audit opinion purchase easier to realize;Poor regulation of government regulators will increase the likelihood of an audit opinion buying behavior;Incentive mechanisms linked to the company's financial performance and share price provide incentives for managers to buy audit opinions.