Corporate Tax Avoidance,Auditor Industry Expertise And Audit Opinions

The audit opinion is the expression of the auditor's opinion after the auditing procedure of the financial report of the listed company.The public's judgment on whether the financial information of the listed company is authentic and the important basis for investors to make investment decisions has always been the focus of discussion among scholars and the public.To a certain extent,it reflects the quality and value of accounting information of enterprises.The tax avoidance behavior has been the focus of attention of the regulators.Due to the frequent tax avoidance of multinational companies in recent years,it has become the focus of academics and researchers.There are two main mechanisms for the impact of corporate tax avoidance on the quality of corporate accounting information,and the two are completely opposite.One is based on the corporate values of tax avoidance,which believes that tax avoidance can increase the retained earnings of the company,and the increase of retained earnings can improve the business ability of the company,which will improve the quality of the company's accounting information;the other is based on the tax avoidance balance and tax avoidance agency From the perspective of these two viewpoints,tax avoidance will bring financial reporting costs and agency problems,which will reduce the quality of accounting information of enterprises.This article focuses on the three aspects of the impact of tax avoidance economic consequences: the value of tax avoidance,the concept of balance and the concept of agency.Based on these three perspectives,the analysis of the mechanism between the extent of tax avoidance and the types of audit opinions of companies can provide evidence for auditors to identify different types of corporate tax avoidance.External audit,as one of the external governance mechanisms,will have a significant impact on corporate governance.The high tax avoidance behavior of listed companies is often accompanied by earnings manipulation motives.Therefore,this will be related to financial statement items,which will increase audit difficulties and audits.Likelihood of failure.Can the external auditors perceive the information behind the tax avoidance behavior of listed companies in the process of issuing audit reports?What impact will it have on the issuance of audit opinions? So is it possible for auditors with industry expertise to be more able to identify the underlying motivations and choose to avoid audit risks and issue non-standard audit opinions? These questions urgently need objective answers from the theoretical world.In addition,China's early researches examined the auditor's industry expertise at the national level,but in practice,considering the different fiscal and taxation industrial policies between regions,the cultivation of industry expertise is mostly based on the regional level.Therefore,this article determines the auditor's industry expertise based on the regional level,and explores whether the auditor's industry expertise of local accounting firms in China will consider its reputation to remain independent and how it affects the relationship between the tax avoidance of listed companies and the types of audit opinions? Provide research evidence on the above issues.Therefore,this article takes China's Shanghai and Shenzhen A-share non-financial listed companies as research objects,and combines normative analysis and empirical research to study the relationship between the tax avoidance of listed companies and audit opinions.First,this article reviews and sorts out the existing related research results at home and abroad,in order to understand the current research status more accurately.Second,it analyzes the issues to be studied in this article based on related theories and proposes corresponding hypotheses.Regression model,through the collection of data,empirical testing of the hypotheses proposed,and analysis of empirical results;finally draw conclusions.The research results in this article show that: First,when the tax avoidance level of the client company is low,the possibility of the listed company being issued a non-standard audit opinion will gradually decrease as the tax avoidance level of the company increases;The possibility that a company is issued a non-standard audit opinion rises with the degree of tax avoidance,that is,there is a non-linear relationship between the company's tax avoidance and the audit opinion.Second,when auditors have industry expertise at the regional level,both at the firm level and at the CPA level,when tax avoidance is high,the probability of a client company being issued a non-standard audit opinion increases.According to the related research in this article,we have also got some enlightenments accordingly.Auditors can identify the impact of tax avoidance on corporate value at different levels,which is reflected in audit opinions.Firms or certified public accountants with regional industry expertise can identify high tax avoidance listing The company further increased the probability of issuing non-standard audit opinions.There is complex information behind the high tax avoidance behavior of listed companies.Relevant departments should attach great importance to the economic consequences of this behavior;strengthen inspection and supervision of corporate tax avoidance activities and increase the corresponding penalties;when performing audits,accounting firms Attention should be paid to tax avoidance behaviors of enterprises;for China's accounting firms and certified public accountants themselves,adopt active policies to cultivate their industry expertise,thereby improving their audit quality.