Executive Power?audit Committee Governance And Audit Opinions Shopping

The audit opinion report is an important information carrier to the capital market.The management expects to use the auditors to verify the "authenticity" and "fairness" of the financial statements and send positive information to the capital market.However,when there are loopholes that result in poor quality of accounting information,the auditor is unable to control the risk and then is likely to issue non-standard audit opinions,the management will make deal for their own profit-seeking motives with auditors.This is the audit opinion shopping.The audit committee is important to improve corporate governance,which is conducive to standardizing the company's operations and reducing the risks of related stakeholders.Its responsibilities include hiring,reappointing,and changing the auditing organization;supervising the implementation of internal control by the internal auditing department;supporting external auditing Work and so on.Whether to implement audit opinions is a complex decision-making process.There are many influencing factors.As important roles,high-power executives and audit committees cannot be ignored.Is there audit opinion shopping behaviors in listed companies? The greater the power of the executives,the more they can promote the audit opinions shopping? Can the audit committee suppress the audit opinions shopping? Under the influence of powerful executives,can the audit committee suppress the audit opinions shopping?This article intends to conduct research on executives with large powers ?audit committees and audit opinion shopping.Firstly,this paper reviews and sorts out the literature and theories on executive power,audit committees,and audit opinion shopping behaviors.Second,it uses the Lennox(2000)model for empirical analysis.The empirical analysis uses Shenzhen-Shanghai A-share non-financial listed companies as research samples.Thirdly,the results show that China's listed companies have audit opinion shopping behavior.the higher power of the executives,the easier to promote the audit opinions shopping.An professional,independent audit committee can suppress the audit opinions shopping behavior.When executives exert pressure on audit committees,the powerful executives will suppress the audit committee,and eventually company will purchase audit opinions.