It has a long history with the phenomenon of“high deposits and loans”in China. Taking A-share listed companies from 2007 to 2020 in China as a sample, this paper empirically investigates the relationship between the phenomenon of“high deposits and loans”and audit opinions. The results show that firms with“high deposit s and loans”could increase the probability of auditors issuing modified audit opinion due to higher audit risk. Cross-sectional analyses show that the auditors are more likely to issue modified audit opinion in firms with great difficulty in repaying funds in the future and more related party transactions. The results of the mitigation mechanism show that the probability of modified audit opinion issued by firms with“high deposits and loans”could be alleviated by higher corporate governance. The conclusion of this paper provide reference for auditors to better understand the phenomenon of “high deposits and loans” in enterprises and to take reasonable countermeasures to warn investors in the future.