An Empirical Study on the Relationship between Accruals and Modified Auditing Opinion
Yan Jin · Journal of Hunan Financial and Economic College · 2006
The company accruals have the impact on the possibility of being issued modified auditing opinion about its financial reports.The analysis on related data of the listed company in 2003 shows that accruals have no obvious influence on the kinds of auditing opinion.The reason may be the fact that the CPAs have paid enough attention to the risk of the firm so they will not be sensitive to the accruals which might have been manipulated.The change of accounting firm may imply that CPAs have lost their auditing independence.