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Research On The Economic Impact Of Administrative Punishment On Accounting Firms

Posted on:2021-01-11Degree:MasterType:Thesis
Country:ChinaCandidate:K XuFull Text:PDF
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With the advent of the new economic era,information disclosure has become an integral part of the market economy and will play a vital role in a more complete economic system in the future.Sufficient information disclosure is the core of the securities market,and accounting information is an important basis for investors' decisions.Therefore,the quality of accounting information is closely related to investors' decisions.As an intermediary between the securities market and the users of accounting information,the professional appraisal of certified public accountants helps to ensure the authenticity and transparency of accounting information and plays an important role in ensuring the quality of accounting information disclosure.Therefore,the certified public accountant plays the role of "economic police" in the market economy,and not only bears the responsibility of "gatekeeper" for accounting information disclosure,but also has very important practical significance for maintaining "openness,fairness,and justice" in the securities market.In recent years,with the continuous expansion of the capital market and the improvement of the economic system,China's certified public accountant industry has also developed qualitatively and quantitatively.Nevertheless,due to the relatively late start of China's certified public accountant industry compared with developed countries,the corresponding laws and regulations are not complete,and the professional standards and professional ethics of certified public accountants are lacking.This has led to an endless stream of violations in the securities market.For example,the events of“Qiongminyuan”,“Ningguangxia”,and recent years of “Fraudulent Information” of listed companies such as “Kangdexin” and “Kangmei Pharmaceutical” all show that there are many problems in China's certified public accountant industry.Although the CICPA and the CSRC have gradually increased the supervision of the certified public accountants industry and increased the punishment for violations of laws and regulations by accounting firms and their CPA,they still cannot fundamentally prevent the occurrence of violations of laws and regulations.Therefore,how to improve the laws and regulations of the certified public accountants industry in China,strengthen the supervision and management of the certified public accountants industry,and give full play to the role of the CPA as an "economic police" in monitoring and the role of the "janitor" in the disclosure of accounting information is an urgent matter research topics.Therefore,analyzing the reasons for the failure of audit and the effect of the CSRC's penalties on it can not only provide effective suggestions for relevant departments to improve the corresponding laws and regulations,but also have a very important construction significance for the healthy development of the certified public accountant industry.This article takes the administrative punishment of Ruihua Certified Public Accountants as a case,and takes the joint punishment of the Ministry of Finance and the Securities and Futures Commission in 2017 as the node.The number of customers before and after punishment,audit fees,audit quality and other indicators were analyzed.By analyzing the consequences of the CSRC's administrative punishment for Ruihua Certified Public Accountants,it was explored whether strict supervision would have an economic impact on the accounting firm.Based on this,from Proposals are made from three perspectives: industry supervision,accounting firms,and certified public accountants.After qualitative and quantitative analysis,it was found that administrative punishment did not have a significant impact on the economic consequences of Ruihua Certified Public Accountants.The importance and sensitivity of administrative punishment on accounting firms in the securities market were not as expected,indicating that administrative punishment had not been obtained.Give full play to this,which is also the root cause of repeated punishments by Ruihua Certified Public Accountants.Therefore,in order to effectively improve the quality of the audit industry,it is necessary to increase the penalties and illegal costs of accounting firms and their illegal registered accountants,so that CPA can truly become "economic police" in China's economic market.The main contributions of this article:(1)Previous studies on the economic impact of administrative punishment in accounting firms have mostly focused on empirical research.In this article,through case study,Ruihua Certified Public Accountants is used as the case object to analyze the impact of administrative punishment on accountants.The impact of the firm's number of clients,audit fees,and audit quality has enriched research in this area.(2)Studying the impact of administrative punishment on the number of clients,audit fees,and audit quality of Ruihua Certified Public Accountants can cause other accounting firms to pay more attention to administrative punishment,which will help regulatory authorities improve the regulatory system and The penaltymechanism is of great significance to promote the accounting firm to strengthen its own construction and continuously improve the audit quality.
Keywords/Search Tags:Accounting firm, Administrative Punishment, Audit quality, Audit fees
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