The Research Between Book-tax Difference And Audit Opinion

The book-tax difference results from the separation of accounting and tax law,which not only reflects the information of system difference,but also reflects the behavior of earnings management and tax avoidance to a certain extent.Auditors were once called the "economic police" of the state in the industry.The audit opinion issued by auditors can supervise and verify the legitimacy and compliance of the business activities of the audited units.When conducting audit business,auditors will pay special attention to earnings management and tax avoidance information contained in book-tax difference.When issuing audit report opinion,auditors will consider whether there are risks of whitewash and misstatement of corporate financial statements hidden in book-tax difference.In order to reduce the possibility of audit failure and the possible litigation risks in the future,auditors will pay more attention to book-tax difference.Taking Chinese A-share listed companies from 2010 to 2017 as a sample,this paper attempts to combine book-tax difference with audit opinion on the basis of previous studies,to explore the impact of book-tax difference on audit opinion,and to examine the impact of the level of internal control and external tax supervision on the relationship between them.Empirical research results show that:(1)There is a significant and positive correlation between the book-tax difference and audit opinion,and through grouping regression,it is found that positive book-tax difference is positively correlated with audit opinion,while negative book-tax difference is negatively correlated with audit opinion.It shows that although book-tax difference in different directions has different economic meanings,there is no significant difference in accounting information content,which will have an impact on audit opinion.(2)With the improvement of internal control level of enterprises,the positive relationship between book-tax difference and audit opinion will be weakened.(3)With the increase of the strength of external tax supervision,the positive relationship between book-tax difference and audit opinion will be weakened.