Study On The Long-term Effect Of Accounting Firm's Transfer Policy

In July 2010,the United Nations Administration for Industry and Commerce of the Ministry of Finance promulgated the Provisional Regulations on Promoting the Use of Special General Partnership Organizations by Large and Medium-sized Certified Public Accountants(CCC[2010] No.12),requiring “a large-scale accounting firm to be in December 31,2010.The special general partnership transformation was completed recently and the medium-sized accounting firm was encouraged to complete the restructuring before December 31,2011 in order to achieve a larger and stronger accounting firm.From 2010 to 2011,domestic large and medium-sized accounting firms successively completed the restructuring.In 2012,the four major international institutions also completed the conversion.So far,the restructuring policy has been implemented for more than seven years,and its effect is worth paying attention to.This paper will conduct theoretical and empirical studies on the long-term effects of the transformation policy.This paper uses the butterfly effect theory to study the long-term effect(also known as the long-term effect)of the transformation policy,that is,the impact on the CPA industry and the securities market after the implementation of the transformation policy seven years later.Impact on the CPA profession,using basic resource theory,captive control theory,and reputation theory to analyze the changes in the size and quality of the audit firm after the implementation of the transformation policy;the impact on the securities market is known from the theory of butterfly effects,accounting firms,registration Changes in the accounting profession will gradually lead to changes in the quality of listed companies' earnings and the effective operation of the securities market.Based on the above theoretical analysis,the data from accounting firms and listed companies are used to conduct empirical tests.The study finds that after the implementation of the restructuring policy,the size of the accounting firm has been expanded,the quality of the audit has been improved,and the level of earnings management of listed companies that have been audited by the special general partnership system has declined,and listed companies that have been punished by “two meetings” have been punished.The growth rate of the number and the number of listed companies in ST and *ST accounted for a significant decline in the total number of listed companies.It is concluded that the transformation of the accounting firm into a special general partnership system,ie,a "transformation policy," not only helps the accounting firm to "get bigger and stronger," but also benefits the overall level of the securities market.Finally,the paper recommends that the government further expand the scope of the firm's transformation and strengthen the restructuring of the firm;it is recommended that domestic accounting firms improve the management mechanism and enhance their reputation;and it is recommended that listed companies strengthen their internal management so that they can bear lower risks of non-compliance.Concerned about the long-term effects of the reform policy,and using the butterfly effect theory to expand the effect of transformation policy from the accounting firm to the CPA industry,listed companies and the securities market,which is the innovation of this article.