The Relationship Among Internal Control Defects,Corporate Governance And Audit Opinions Of Financial Reporting

The growing prosperity of the capital market can bring investors a lot of information related to their interests.And the financial report is an important part of the capital market.Financial report includes not only the information of enterprise distribution and operation,but also the information of enterprise capital source and operation.It can provide effective support for investors’ investment decision-making.Therefore,the quality of financial report directly affects the vital interests of investors.In order to ensure the interests of stakeholders,Our country stipulates that enterprises must submit financial reports to CPA for audit and issue audit reports by accounting firms,and finally provide audit reports and financial reports to external users.Standard audit opinions issued by accounting firms mean that the financial reports of listed companies are relatively reliable,while non-standard audit opinions mean that stakeholders need to trust earnings information carefully.Not only that,the issuance of non-standard audit opinions will also have a certain impact on the reputation of listed companies.Therefore,the information in audit report is very important,and it is very important to study audit opinions..To study the reasons why non-standard audit opinions are issued,we should start from the internal analysis of listed companies.From the major financial fraud incidents of listed companies at home and abroad,we can see that the internal control mechanism and corporate governance mechanism of many listed companies have not achieved the supporting control effect they should have.With the introduction of many laws and regulations on internal control at home and abroad,academic circles began to pay attention to the discussion of internal control defects.The relationship between internal control system and corporate governance of listed companies has become a hot research module in academic circles,which meets the requirements of strengthening internal control system and corporate governance mechanism in China.It is of great significance to explore the impact of internal control defects and corporate governance on the quality of financial reporting of listed companies,which is conducive to protecting the interests of investors and maintaining the health of capital market.Therefore,the study of this paper is very valuable,which can help listed companies realize the importance of observing the laws and regulations designated by the state in these two aspects in essence,clarify their thinking and clarify the direction.This paper takes this opportunity to explore the relationship among internal control defects,corporate governance and audit opinions based on principal-agent theory,information asymmetry theory,cybernetics and incomplete contract theory after analyzing the domestic and foreign research literature on internal control defects,corporate governance and audit opinions.This paper first theoretically analyses the concepts and types of audit opinions on financial reports,the concepts and types of internal control deficiencies,the concepts and influencing factors of corporate governance,internal control deficiencies,corporate governance and audit opinions on financial reports,and then takes internal corporate governance as an intermediate variable.This paper studies the relationship between internal control deficiencies in financial reports and audit opinions of listed companies from four aspects.This paper holds that when the company has internal control defects,a good internal governance structure can become an alternative mechanism to the internal control system,reducing the possibility of non-standard audit opinions issued by accounting firms,while unreasonable internal governance structure will increase the risk of problems in financial reports and improve the non-standard issue of corporate financial reports.The possibility of audit opinions.In view of this,this paper chooses 2012 as the starting point,and takes the listed companies whose internal control flaws are disclosed by Shanghai and Shenzhen A-share motherboard from 2012 to 2016 as the research sample.Firstly,this paper constructs the model of the relationship between internal control flaws and audit opinions,and then constructs the model of the relationship between the index such as the degree of equity checks and balances and audit opinions.Finally,the model with intermediate variable and principal variable multiplier is constructed to study the influence of intermediate variable on internal control defects and the positive correlation between non-standard audit opinions of listed companies’ financial reports.Then,descriptive statistical analysis and correlation are used to analyze the relationship between intermediate variable and non-standard audit opinions of listed companies.Data were analyzed by test,multiple regression analysis and robustness test.At the same time,in order to eliminate the possible col-linearity between the cross-multiplier and the main variable,this paper studies the positive correlation model between the intermediate variable and the internal control defects and the non-standard audit opinions of listed companies’ financial reports,and centralizes the relevant data before multiple regression test,and the corresponding analysis results were obtained according to the centralized data.After that,in order to increase the robustness of the research conclusions,this paper replaces the relevant variables for robustness test.Finally,this paper gives some suggestions based on the conclusion.