Research On The Relationship Between Real Earnings Management And Audit Opinion

In recent years,earnings management has become a new research topic.The research on earnings management and audit quality is also in the ascendant.A series of vicious accounting earnings manipulation events in the stock market involve huge amounts and bad influence.CPA,as an important part of external supervision,is also implicated and accused.Because the main purpose of earnings management is to regulate the profit of the enterprise,the result of its manipulation will be reflected in the financial report.The effective external audit should play a supervisory role in the earnings management,and the final result of the external audit is the audit opinion,so that whether the CPA pays sufficient attention to real earnings management in the process of auditing,whether the audit opinion can effectively identify real earnings management remains to be further studied.Through a series of studies on the literature of earnings management and audit opinion,this paper holds that the relationship between earnings management and audit opinion has not been agreed at present.Some scholars believe that audit opinions can identify real earnings management,while some scholars have different opinions.This paper attempts to use the case study method,through the analysis of individual case to verify and discuss whether the audit opinion effectively identifies and reflects the real earnings management.The case of this article is A Company.Through the introduction to the basic situation of the A Company,this paper thinks that in 2016,the A Company was fully equipped with the motivation to manipulate the profit through the earnings management in the face of the pressure of the delisting and the bad profit situation in 2016.It has the possibility of manipulating profits with real earnings management.Through the analysis of the real earnings management of the case and the analysis of the audit opinion,this paper draws the conclusion that CPA can identify some real earnings management and have a certain supervisory role,but to a great extent,CPA is neglecting and tolerating the real earnings management behavior of the company.In this regard,the main suggestions are as follows: improving the internal governance capacity of the company,supervising departments to strengthen the supervision of real earnings management,improving the environment of the accounting firms and improving the professional quality of the stakeholders.