Research On The Accounting Firm System Based On The Distortion Of The Accounting Information Disclosure About The Listed Companies

In recent years, there has been a series of cases of cheating involving the listed companies on our stock market, which brought about the serious problem that some listed companies were breaking the law in releasing their information. With no exception, there was not a single accounting firm that was not involved in one of the cases. For example, Zhonghua Accounting Firm, Hainan offered a fake audit report for Hainan Minyuan Modern Agricultural Development CO., LTD. Shudu Accounting Firm of Chengdu, Sichuan faked information for Hongguang Company of Chengdu. Sichuan Accounting Firm was charged with cheating in placing Dongfang Boiler Factory's shares for sale on the stock market. The biggest accounting firm in Shenzheng —Zhong Tian Qin Accounting Firm was involved in the notorious case of Guangxia (Yinchuan) Industry Co., Ltd. The credit of C.P.A, who is usually called "the Police of Economy" is now in doubt.The main reasons, according to this paper, are that the accounting firms are small and lack independence and some C.P.A are of low quality. What's more, there are deficiencies in the supervising system in the field of C.P.A and the price for accounting services is not reasonable, either. This paper intends to analyse the accounting firm system and points out that it is the system that really accounts for the present situation of the accounting firms. So it is significant for us to improve and regulate the accounting firm system and enhance its independence in order to authentically and completely release the accounting information, particularly that of the listed companies for the benefit of the investors and the development of the stock market.The whole paper is divided into seven sections.Section 1 analyses the problem of the information disclosure about the listed companies and points out the main reason is that the accounting firm is neglecting its duty, especially in the accounting information disclosure about the listed companies.Section 2 discusses the effect of the internal and external factors of the accounting firm such as the lack of independence, the small size, the poor staff quality, etc. on releasing the accounting information about the listed companies.Section 3 indicates that the present situation of the accounting firm lies in the accounting firm system which prevents the accounting firm from developing and getting independent.Section 4 compares the system of the international accounting firms and its practice with those...