Legal Research On Supervision Of Listed Companies' Auditing Activities

Since the Industrial Revolution,the great economic crisis made people realize that the listed companies have great destructive power to the society and economy.In order to effectively alleviate the negative impact of listed companies on social and economic development,as an institutional arrangement to supervise the operation of listed companies from outside,audit has been highly valued by the public at the very beginning.However,fraud scandal from the listed company's financial report has been exposed,which made the public outcry.Signed unqualified accountants and certified public accountants in these false financial statements,he sees himself as a victim in the face of public censure.A consequent divergence of opinion makes it difficult to find a solution between the audit profession and the public.In the face of the interests of both sides,it is important to explore a reasonable regulatory boundaries of how can regulators seek a balance between audit professional interests and the interests of public investors.This paper is based on the practical needs of the audit supervision of Listed Companies in China,and starts from balancing the professional interests of the audit and the interests of the public investors.By introducing the professional characteristics of audit services of listed companies,this paper reveals the cognitive differences between the audit profession and the public,thus,it is possible to correctly understand the differences between the two.Then analyzes the business legal system for the supervision of audit of Listed Companies in China,and founds that China's legal system of supervision of the listed companies can not meet the needs of law enforcement supervision,and even plays a negative role to achieve regulatory objectives.At the same time,this paper uses empirical methods to analyze the problems exposed in the audit supervision of Listed Companies in China.After sorting and summarizing these problems,we think that we should solve the problems of the supervision of the audit business of Listed Companies in China from the following aspects:regulatory legislation and supervision and law enforcement,and then help to break the conflict of interests between the audit profession and the public at the legal level,and provide the legal guarantee for the sound development of China's capital market.First of all,this paper analyzes several problems related to audit supervision of listed companies,including the definition of the audit of listed companies,the necessity of the supervision of listed companies and the legal basis of the supervision of Listed Companies in China.Secondly,combing the current situation of legislation and law enforcement of audit supervision of Listed Companies in China and pointed out our country listed company audit service existence legislation and the law enforcement questions.To further explore these legal issues in which find that the legislative orientation is unclear and the legislation is not refined,which is the main reason for the problems of the legal system of the supervision of audit of Listed Companies in China.In the areas of supervision and law enforcement,the poor adaptability of laws and regulations and the lack of reliability of law enforcement are the main causes of supervision and law enforcement.Thirdly,by comparing and drawing on the practical experience of the United States and Britain and the three countries on the legislation and law enforcement of the audit work of listed companies,experience for the audit services of Listed Companies in China can be provided.Finally,to consider the design and practical experience of the legal system of audit business supervision of Listed Companies in our country.On the one hand,we propose to reshape the relevant provisions of China's CPA Law,Company Law and Securities Act,making it clear about the positioning of the legislation of audit supervision of listed companies,and putting forward some detailed proposals for some of them.On the other hand,it is necessary to improve the supervision capability of the Securities Regulatory Commission to solve the problems of supervision and law enforcement of listed companies' auditing business.