The Impact Of Estimated Debt On Audit Fees And Audit Opinion

In the context of economic globalization,the world economy is more closely connected and the business environment is more complex.In this context,uncertainties such as external guarantee,pending litigation,loss contract,etc.occur frequently,and most listed companies will set aside projected liabilities.On the one hand,due to the uncertainty of the time and amount of the estimated liabilities,the subjectivity of the provision and the reversibility,the estimated liabilities become the means of profit manipulation.On the other hand,with the increasingly strict supervision of audit work by CSRC and China institute of certified public accountants,the cost of certified public accountants' failure in auditing has been increasing.Once the failure in auditing,the penalties faced by certified public accountants are very severe.The presence of anticipated liabilities increases the difficulty for certified public accountants to make professional judgments and assess risks.In order to reduce and compensate the audit risk of certified public accountants,will certified public accountants increase audit fees and issue non-standard audit opinions?So the estimated debts on audit fees,audit opinion research is of practical significance,it is not only beneficial to strengthen the consciousness of risk management of listed companies and help locking risk sources,certified public accountants to improve investor risk awareness,protect the interests of investors,can provide ideas for regulators to improve capital market environment.This paper mainly USES the empirical research method.First of all,the relevant literature is sorted out and summarized,and then the hypotheses are put forward on the foundation of insurance theory and information asymmetry theory.Then,China's a-share listed companies from 2014 to 2017 in the database of CSMAR were taken as the initial research samples to build A two-way fixed-effect model,and Stata13 was used to conduct empirical analysis on the impact of estimated liabilities on audit expenses and estimated liabilities on the type of audit opinions,and the regression results were obtained.The results show that the higher the amount of accrued liabilities,the higher the audit fee charged by certified public accountants,and the possibility of issuing non-standard audit opinions will be higher.Finally,it puts forward policySuggestions from three aspects:company,accounting firm and supervision.