The Association between Modified Audit Opinion and Accounting Restatements

• Main Authors: Chung-Hao Lee, 李崇豪
• Other Authors: WEI-REN YAO
• Format: Others
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/29121956233515613853

碩士 === 國立東華大學 === 會計與財務碩士學位學程 === 104 === This study is to examine whether modified audit opinions (MAOs) provide information related to financial restatement. Based on a sample of financial restatement issued by Taiwan listed firms during years 2001 to 2010, this study finds that, first, there is a higher probability of financial restatement issued in the year after a firm receives MAOs. Second, while MAOs are classified into six categories, this research finds that MAOs with “audit-related information” , “opinions inconsistency” and “emphasis of matter” explanatory language are related to financial restatement. Third, MAOs issued by industry specialist have little association with financial restatement. In sum, these results suggest that MAOs contain limited information related to financial restatement.