The paper testes the relationship between audit opinions and financial sensitive zones and accounts on the basis of the data of A-share companies in China. The author finds that when ROE of listed companies is in the ...The paper testes the relationship between audit opinions and financial sensitive zones and accounts on the basis of the data of A-share companies in China. The author finds that when ROE of listed companies is in the small-profit zone or in the large-loss zone, the probabilities that they get modified audit opinions increase. But the right-offering zone, accrual accounts and accounts below the line have no significant effects on the modified audit opinions. Besides, the author also finds that the ratio of accounts receivable to asset, debt ratio, previous year＇s audit opinion and change of CPA firms have significant positive effects on the modified audit opinions, while the ratio of major business revenue and size of companies have no notable effects. Some other factors such as cash ratio, age of the listing and CPA firm ranking have no consistent and continuous effects.展开更多
Under the situation where the ownership is split up, existing shareholders might occupy potential shareholders＇ interests, and similarly, controlling shareholders might occupy the interests of minority shareholders. ...Under the situation where the ownership is split up, existing shareholders might occupy potential shareholders＇ interests, and similarly, controlling shareholders might occupy the interests of minority shareholders. This is called interests entrenchment effect, which leads to the dissimilation of independent audit relationship. That is to say, existing shareholders and controlling shareholders have the probabilities to utilize auditing commission to manipulate audit opinions with the purpose of interests entrenchment, which forces auditors who should be independent ＂third party＂ to become audit clients or accessories of ＂interests coupling between audit clients and auditees＂. According to the argument above, this paper proposes the owners＇ interests entrenchment hypotheses. It also proves that existing shareholders occupy potential shareholders＇ interests, and controlling shareholders occupy minority shareholders＇ interests on the basis of the data of A-share companies in Shenzhen and Shanghai Exchanges.展开更多
This paper studied the ＂pressure＂ and ＂opportunity＂ factors that caused financial statement fraud on the basis of the data of 41 A-share listed companies （1999-2004） in China which had been forfeited by China Se...This paper studied the ＂pressure＂ and ＂opportunity＂ factors that caused financial statement fraud on the basis of the data of 41 A-share listed companies （1999-2004） in China which had been forfeited by China Securities Regulatory Commission （SRC） because of accounting irregularities. The author found that avoiding ＂ST＂ and ＂PT＂ was the primary pressure, and the opportunities mainly came from the higher top 10 shareholders＇ ownership concentration, the lower proportion of independent directors, the fewer number of directorate meetings and shares owned by the directorate members, board chairman and CEO held by one person and the ineffective supervisor boards. We also found that the companies involved financial statement fraud had the lower first majority shareholder＇s share proportion and they changed CPA firm more frequently.展开更多
文摘The paper testes the relationship between audit opinions and financial sensitive zones and accounts on the basis of the data of A-share companies in China. The author finds that when ROE of listed companies is in the small-profit zone or in the large-loss zone, the probabilities that they get modified audit opinions increase. But the right-offering zone, accrual accounts and accounts below the line have no significant effects on the modified audit opinions. Besides, the author also finds that the ratio of accounts receivable to asset, debt ratio, previous year＇s audit opinion and change of CPA firms have significant positive effects on the modified audit opinions, while the ratio of major business revenue and size of companies have no notable effects. Some other factors such as cash ratio, age of the listing and CPA firm ranking have no consistent and continuous effects.
文摘Under the situation where the ownership is split up, existing shareholders might occupy potential shareholders＇ interests, and similarly, controlling shareholders might occupy the interests of minority shareholders. This is called interests entrenchment effect, which leads to the dissimilation of independent audit relationship. That is to say, existing shareholders and controlling shareholders have the probabilities to utilize auditing commission to manipulate audit opinions with the purpose of interests entrenchment, which forces auditors who should be independent ＂third party＂ to become audit clients or accessories of ＂interests coupling between audit clients and auditees＂. According to the argument above, this paper proposes the owners＇ interests entrenchment hypotheses. It also proves that existing shareholders occupy potential shareholders＇ interests, and controlling shareholders occupy minority shareholders＇ interests on the basis of the data of A-share companies in Shenzhen and Shanghai Exchanges.
文摘This paper studied the ＂pressure＂ and ＂opportunity＂ factors that caused financial statement fraud on the basis of the data of 41 A-share listed companies （1999-2004） in China which had been forfeited by China Securities Regulatory Commission （SRC） because of accounting irregularities. The author found that avoiding ＂ST＂ and ＂PT＂ was the primary pressure, and the opportunities mainly came from the higher top 10 shareholders＇ ownership concentration, the lower proportion of independent directors, the fewer number of directorate meetings and shares owned by the directorate members, board chairman and CEO held by one person and the ineffective supervisor boards. We also found that the companies involved financial statement fraud had the lower first majority shareholder＇s share proportion and they changed CPA firm more frequently.
