The Impact Of Inconsistency Between Audit Opinions On Financial Reports And Internal Control Audit Opinions On Creditors Decision-making

The financial fraud cases that have occurred in recent years have caused the public to question the reliability of the accounting information quality of listed companies.At the same time,these incidents also revealed the problem behind the fact that the listed company's internal control system is flawed,which will disrupt the orderly development of the capital market.n 2010,China's relevant departments promulgated the "Guidelines for Enterprise Internal Control Support",and stipulated that it will be implemented on the Shanghai Stock Exchange and the Shen zhen Stock Exchange listed companies since 2012.In addition,it is mandatory to require companies to disclose internal control audit opinions every year,which means Internal control supervision has received sufficient attention.With the development of capital market and the guidance of related policy documents,stakeholders pay more and more attention to the types of audit opinions,and regard them as an important factor affecting investment decisions.In recent years,the introduction of integrated auditing concepts has enabled investors to consider the impact of internal control audit opinions and financial reporting audit opinions when making decisions.Usually audit opinions are standard and can deliver favorable signals.It is also worth noting whether non-standard audit opinions convey unfavorable signals to creditors.Therefore,based on the data of audit opinions from 2012 to 2018,this paper studies how creditors make decisions when the types of audit opinions of financial reports are different from those of internal control audit opinions,whether they only consider a single type of audit opinions of financial reports or a single type of audit opinions of internal control,or whether they consider the types of audit opinions of financial reports and internal control synthetically.On the basis of sorting out and analyzing the existing research results,the sample requirements of this paper are as follows: from 2012 to 2018,internal control audit opinions and financial report audit opinions are issued simultaneously,and the cash flow ratio of listed companies is less than 1.This paper studies whether enterprises can obtain new short-term loans and whether the increment of bank loans will change when audit opinions are inconsistent.Based on the regression results,the paper concludes that:(1)There is a significant positive correlation between the types of audit opinions on financial reports and creditors decision-making,which indicates that creditors pay fullattention to the types of audit opinions on financial reports in the process of decision-making.The type of internal control audit opinions is also positively correlated with whether enterprises can obtain short-term credit,which indicates that the type of internal control audit opinions can also play a signaling role in the process of creditors decision-making.(2)Under the joint effect of financial report and internal control audit opinions,financial report is significantly higher than internal control audit opinions,indicating that creditors pay more attention to financial report audit opinions in the decision-making process,so that the role of internal control audit opinions is diluted.(3)The inconsistency between the type of financial report audit opinion and the type of internal control audit opinion will affect the creditor's decision-making behavior.