A Test on the Relationship between Auditor Switch Initiated by Listed Companies and Auditor Opinions

This paper explores the relationship between auditor switch initiated by Chinese listed companies and auditor opinions received by these companies,which help us understand the quality of audit product.This paper is different from other domestic scholars' research: the previous popular arguments that the non-standardized auditor opinions of last issue would result in firms' auditor switch behavior of this issue prove untrue.Compared with standard auditor opinions,firms which received non-standardized opinions of last issue don't tend to switch auditors in this issue.Especially,the tendency of auditor switch by firms which issued going-concern auditor opinions is expected to be significantly reduced.Auditor switch behavior can significantly improve the probability of standard opinions and reduce going-concern opinions issued.It is the expected audit opinion improvement,not last issued audit opinion,that influences firms' auditor switching decision.