Why do some listed companies prefer to be issued with negative audit reports?

No one wants to see a negative audit report, and neither the firm nor the listed company wants to see it (maybe some individuals will produce non-standard reports for their own ideals or reputations, but the partners of the firm are absolutely unwilling. For them, listed companies are big customers, and they should consider future cooperation and the impact on other listed companies. Then why are there reports of reservations or even negative opinions? First of all, we should see that non-standard reports account for a very small proportion in the audit reports of all listed companies. According to the data, there are only four companies, while there are nearly 3,000 listed companies in China. These thousands of listed companies certainly have reports that do not meet the requirements of auditors, and they are finally solved satisfactorily through the game between the firm and the management. The negative report is that the game failed and the two sides could not talk normally. This situation is rare, but it is not without it. Maybe at first, both sides thought they could talk it over, so they kept talking. After several rounds, they found that the goal gap between the two sides was too big (you can imagine how many stories happened in this process, the stories were wonderful, and the opposing feelings between the two sides were accumulating). At this time, the best way is for the audit team to leave and change to a relaxed one. The problem is that the audit of listed companies is not a general audit, but there are regulations. Can we change auditors instead of firms? It is absolutely possible! But at this time, the quarrel between the two sides must be very serious, and it is no longer the auditor's business. The contradiction between the firm and the listed company has escalated into the main contradiction. If the firm does not agree, it is useless to change the number of people. The report of the listed company must be published. At this time, the management of listed companies should consider the lesser of the two evils. If published according to the requirements of the firm, it is equivalent to taking off your pants and appearing naked! It's a multiple-choice question. I still have my pants. Just hang a sign on your body and write "false teeth" in two big letters. The final choice still depends on the executives themselves!