| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 90 === Audit report is the media between accountants and investors, and the Opinion affects how public look at one company’s financial report, which usually reflects on its stock prices. This research compares investors’ perception of Modified Audit Opinion, a newly added Opinion type in the Statement of Auditing Standards No.33, Yr. 1999, with the perception of Unqualified Opinion, an Opinion being commonly used for last decades. This research also examines how investors interpret Modified Audit Opinion under three different circumstances, material item, accounting principle change, and going concern.
The empirical findings are as follows: (1) significant stock price drop is observed for Modified Audit Opinion on an overall basis. (2) Investors have different responses to Modified Audit Opinion under different circumstances. When Modified Audit Opinion is specified as material item, or accounting principle change, its influence to stock price is not observed. However, when going concern is specified, stock price is severely dropped. (3) There is no difference between modified audit opinion at first time and on a continuous basis. (4) The effect of institutional holding is insignificant.
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