An Empirical Study On The Influence Of Financial Restatement To The Audit Opinions Of Certified Public Accountants Of Companies

In recent years,China's economy has enteredfast-growing economic model,and the new normal of the economy has also brought many problems and opportunities.China's new auditing standards in 2019 also attach great importance to policy changes by increasing its level of importance in the annotation content and suggesting that major misstatements of qualitative categories need to be clearly explained and highlighted.At the same time,various accounting standards,auditing standards and related policies in China have also been promulgated and revised.Enterprises has been facing more complex and more risky capital environment,which has opened up a new development model for them.However,because of the continuous changes in various policies,companies have new requirements for understanding of the standards and choosing accurate accounting methods,and also provide new ways for corporate executives to implement profit manipulation.At present,the retrospective adjustment of previous published information occurs in various parts of the world,known as Financial Restatement which is discussed later in this thesis.The occurrence of financial restatement may be caused by the company's imporoper understanding of the regulations or the staff's self-failure,or it is possible that the auditor did not find the wrong information in the financial statements at the time and caused the company to restate.The restatement and the companies as well as the auditors have inseparable relationship.Financial restatements will cause obvious reactions in the capital and audit markets,which could cause huge losses to the legitimate rights and interests of relevant stakeholders.In addition,the economic environment and business become increasingly complex and financial restatements will have diversified reactions.Therefore,a further study concerning the effects of financial restatement on audit opinions will help public accountants to improve audit quality and investors to make accurate decisions.Therefore,further research on the impact of financial restatement on audit opinions is conducive to the improvement of audit quality and accurate investment decisions.Reducing financial restatement from the root helps the company maintain a good reputation as well as a sustainable and healthy development.Furthermore,it can effectively improve auditors' risk awareness and audit quality and provide reference for relevant regulatory authorities to propose targeted measures.This article applies a logistic model verifying if the financial restatements have an impact on auditing opinions by sorting out domestic and foreign literature in accordance with relevant theoretical research foundations,financial restatements,the actual state of disclosure of audit opinions in the market and a selection of the 2015-2018 A-share listed companies in Shanghai.Based on these works,the restatement samples are classified.The impact of the restatement on the audit opinion is studied based on the specific classification of the number of subjectsinvolved,the nature of the subject,the direction of earnings adjustment,and the cumulative impact amount.The research results show that the probability of a listed company obtaining a non-standard audit opinion is positively related to the restatement behavior;the number of items involved in the restatement(5 or more),the extent of the restatement and accounting,technical financial restatement and non-standard audit opinions changed positively;the restatement of core(involving revenue and expense subjects)and the reduction of earnings were positively related to non-standard audit opinions,but not very significant.According to the experimental conclusions,relevant suggestions are proposed: for listed companies,it is necessary to strengthen the company's internal supervision and management,and improve the professional quality of staff to reduce understanding and operational errors as well as the quality of statement preparation from the root;for firms and auditors,their risk awareness and recognition need to be improved,and they should pay attention to relevant matters of the enterprise and take effective measures to control risks as a supervisory responsibility;supervisory departments need to continue to increase penalties,mandatory means to reduce restatement and maintain the normal order of the capital market.The inadequacy of this paper is that only the empirical data of Shanghai Stock A were studied during the sample selection process,and it is not representative in other sectors;it was not divided into details in the study of audit opinions,and only standard and non-standard categories were considered.In future studies,researchers could conduct a comprehensive study of the Shanghai and Shenzhen stock market data,subdivide the non-standard audit opinions,and include the audit opinions of continuing business matters and the audit of other matters.Comments are added to the classification to draw more targeted conclusions.