The Determinants of Going Concern Audit Opinions: Evidence from Shanghai Stock Exchange over 2009 to 2011

LIU, LUPING (2012) The Determinants of Going Concern Audit Opinions: Evidence from Shanghai Stock Exchange over 2009 to 2011. [Dissertation (University of Nottingham only)] (Unpublished)

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Abstract

This research examines the factors which can affect auditors to issue going concern audit opinions in the Chinese stock market, and furthermore, to discuss the audit quality among Chinese reporting system through the issuance of going concern opinions. Firstly, the data results illustrate that Chinese auditors are more likely to issue going concern audit opinions to those listed companies with poor profitability, low liquidity, less cash inflows and high leverage. Secondly, it can be examined that audit fee paid by a client has no statistically significant effect on impacting auditors to give going concern audit opinions. Finally, comparing with Big-Four and non-Big four audit firms, no significant difference between two types of auditors on which one have more preference to issue going concern audit opinions is found. Generally, the research shows a mature audit profession in developing countries like China is being formed, that audit independence is not compromised by economic dependence and the majority of Chinese auditors mainly issue going concern opinions based on financial distress indicators. Besides, this research paper indicates additional discussion about improvements on audit quality and independence since the new audit standard for going concern is promulgated in 2003.

Key Words: going concern audit opinions, risk of bankruptcy, fee independence, size of audit firms, improvements on audit quality and independence

Item Type: Dissertation (University of Nottingham only)
Depositing User: EP, Services
Date Deposited: 08 Apr 2013 11:26
Last Modified: 23 Oct 2016 23:23
URI: http://eprints.nottingham.ac.uk/id/eprint/25581

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