Empirical Study On The Effect Of Asset Impairment Loss And Internal Control On Audit Opinion

Since 1998,almost every adjustment of accounting system has involved impairment of assets.Especially in 2006,the Accounting Standards for Enterprises listed impairment of assets as a separate standard for the first time.To a certain extent,the standard reduces the arbitrariness of assets impairment,but the restraining effect is still limited.It involves "net realizable value","recoverable amount","market price","partial impairment reversible" and other issues.It also relies on the professional judgment of accountants,which provides certain earnings for the enterprise management authorities.Management space has increased the audit risk of certified public accountants.Especially,the increase of the amount of assets impairment loss and return directly affects the level of net profit realization of enterprises,and the audit risk increases accordingly,thus affecting the types of audit opinions issued by CPAs.Internal control,as an important internal supervision mechanism of a company,is implemented jointly by all members,aiming at reasonably guaranteeing the legitimate compliance of business management,asset security,financial reports and the integrity of relevant information,improving business efficiency and effectiveness,and promoting a series of control activities of enterprises to achieve development strategy.The quality of internal control has a direct impact on whether enterprises can prevent financial fraud risk,reduce earnings management behavior and ensure the integrity of financial reports.Therefore,it is still worth discussing whether internal control can play its supervisory role and restrain earnings management behavior,thereby weakening the relationship between asset impairment losses and audit opinions.Firstly,this paper classifies and combs the views of relevant scholars in the fields of asset impairment,internal control and auditing from both domestic and foreign aspects,and summarizes the existing research results.Then it introduces the information theory,principal-agent theory and other related theoretical basis,and then theoretically analyses the relationship and mechanism between asset impairment loss,internal control and audit opinions,and puts forward theoretical assumptions,building models and setting variables.Then,it takes 2732 A-share listed companies from 2014 to 2016 as the research object,and uses STATA12.0 to carry on the empirical analysis.It is found that the loss of impairment of assets is positively correlated with non-standard audit opinions,while internal control is negatively correlated with non-standard audit opinions.Internal control can weaken the positive correlation between impairment of assets and audit opinions.In addition,the samples are divided into the east,the middle and the west to conduct empirical grouping.It is also found that the eastern and the central regions support the hypothesis because of regional differences,and the research conclusions of the western regions are not consistent with the hypothesis.Therefore,this paper puts forward corresponding policy recommendations from the internal level of the company,the level of certified public accountants and the level of regulatory bodies,hoping to provide reference for the management of listed companies,the audit of certified public accountants,and the decision-making of regulatory bodies.