Research On The Impact Of Corporate Debt Default Risk On Audit Opinion Purchase

Under the background of the increasingly serious debt default incidents of Chinese enterprises,this paper uses the method of combining case and empirical analysis,taking the irregular issuance of bonds by "Wuyang Construction" as an example,to analyze the motivation and process of the 466search model,and makes a thorough discussion on how debt default risk affects the company's audit opinion purchase behavior from the perspective of beforehand.From the two aspects of excess audit fees and replacement of accounting firms,this paper studies the means to realize audit opinion purchase.At the same time,it further analyses the impact of debt default risk on the purchase of continuous operation audit opinions and the impact of such behavior on audit quality.It is found that firms with higher risk of debt default are more likely to purchase audit opinions in order to avoid the actual occurrence of debt default.The purchase of audit opinions of such firms is often achieved by changing accounting firms or paying excess audit fees.The above situation is changing the measurement index of debt default risk,Sample Pairing and eliminating default wind.A series of robustness tests,such as risk improvement,are still valid.Further tests show that the impact of debt default risk on audit opinion purchase also exists in the continuous operation audit opinion.At the same time,audit opinion purchase behavior significantly reduces the audit quality.In view of the above findings,this paper puts forward the following policy recommendations:Firstly,starting from within the enterprise,transfer the right of selecting accounting firms from the management,such as auditing bond issuing companies by creditors.For companies issuing stocks,shareholders should select accounting firms for auditing;secondly,external supervision and industry supervision should be strengthened,such as requiring enterprises to disclose the reasons for the replacement of accounting firms and audit fees,as well as strengthening the supervision of the CPA industry;lastly,penalties for enterprises and accounting firms should be strengthened to deter both sides from acquiring by conspiracy.The motivation of standard audit opinions reduces the possibility of purchasing audit opinions.This study expands the literature on the influencing factors of audit opinion purchase behavior,and provides relevant references and suggestions for regulatory authorities to formulate relevant policies and investors to make investment decision.