Determinants affecting modified audit opinion on financial audit reports- Evidence from listed construction enterprises on Hanoi Stock Exchange

Abstract

This study examines the determinants that affect the modified opinion on financial audit reports from listed construction enterprises. For this purpose, a quantity research using STATA 14 is set up with a sample of 61 listed construction enterprises on Hanoi stock exchange for the period from the year 2010 to 2018. The result shows that the current modified audit opinion is affected by six determinants are: the prior audit opinion, earnings from the operation, current ratio, company size and time lag (number of days from the ending of the fiscal year and the day of the audit report). After that, the authors raise some suggestions for the users and auditors to assess the suitable issued modified audit opinions.