Abstract
Sobre la base de los datos de las empresas que cotizan en los mercados bursátiles A de Shangai y Shenzhen entre 2007 y 2015, este estudio examina las relaciones entre la calidad del control interno, la competencia en el mercado de productos y las opiniones de auditoría. Los resultados empíricos revelan que (1) cuanto mejor sea la calidad del control interno de las empresas que cotizan en bolsa, más probable es que un contador público certificado emita una opinión sin modificaciones; (2) la competencia en el mercado de productos se asocia positivamente con las opiniones sin modificaciones; (3) la competencia en el mercado de productos debilita la relación positiva entre la calidad del control interno de las empresas que cotizan en bolsa y la probabilidad de que un contador público certificado emita una opinión sin modificaciones; y (4) el impacto significativo de la competencia en el mercado de productos sobre la relación entre el control interno de la calidad y las opiniones sin modificaciones sólo existe en las industrias no monopolísticas. Based on data on listed firms in the Shanghai and Shenzhen A-share stock markets from 2007 to 2015, this study examines the relations among the quality of internal control, product-market competition and audit opinions. The empirical results reveal that (1) the better the quality of the internal control of listed firms is, the more likely a certified public accountant will be to issue a unmodified opinion; (2) the product-market competition is positively associated with unmodified opinions; (3) the product-market competition weakens the positive relation between the quality of the internal control of listed firms and the likelihood that a unmodified opinion will be issued by a certified public accountant; and (4) the significant impact of product-market competition on the relation between internal control quality and unmodified opinions exists only in non-monopoly industries.
Highlights
The effectiveness of the capital market depends on reliability, transparency and information sharing
This study empirically finds that (1) the internal control quality of listed firms is positively related to the likelihood that unmodified opinions will be issued by certified public accountants (CPAs); (2) productmarket competition is positively associated with the likelihood that unmodified opinions will be issued by CPAs; (3) the product-market competition weakens the positive relation between the quality of the internal control of listed firms and the likelihood that an unmodified opinion will be issued by a certified public accountant; and (4) the significant impact of product-market competition on the relation between the quality of internal control and audit opinions exists only in non-monopoly industries
The results indicate a positive relation between internal control quality and unmodified audit opinions, which means that CPAs are more likely to issue unmodified audit opinions for listed firms with high internal control quality
Summary
The effectiveness of the capital market depends on reliability, transparency and information sharing. Firms can replace the internal controls with the product-market competition of external governance mechanisms to improve the quality of corporate information. This study investigates the impact of product-market competition on audit opinions. Based on accounting information on listed firms in the Shanghai and Shenzhen A-share stock markets from 2007 to 2015, this study investigates the relations between the quality of internal control, product-market competition and audit opinions. The study first examines the influence of internal control and product-market competition on audit opinions. The study focuses on the effect of product-market competition and internal governance mechanisms on audit opinions. The study examines the influence of internal and external governance mechanisms on audit opinions in monopoly and non-monopoly industries. The section reviews the related literature on product-market competition, internal controls and audit opinions.
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