Ruihua CPA Violation Case Analysis

In recent years,more and more accounting firms audit report issued by the not diligence and violation by the Commission and other regulatory agencies warning or punishment,which is the accounting firm Ruihua many fined the most typical one,many CPA violation fined is still not afraid to touch regulatory red line,this behind the need to further study.Through the case of violation of the accounting firm Ruihua analysis,root cause using the literature research method and survey method to find out the accounting firm repeated violations fined but repeated violations,impact analysis Ruihua brings,according to the reasons of the violation of the feasibility of the proposed.First of all,through in-depth analysis of the case of Ruihua violation and reading a lot of literature,we study the motives and reasons for the violation.The result shows that the motive of Ruihua's violation is to seek a huge economic benefit,to achieve the goal of maximizing the business of partners and to maintain a good relationship with the audited units.Through the comparison and analysis of the type,quantity,amount and the amount of the income of Ruihua from 2012 to 2016,the reasons for the irregularities of Ruihua are proved to be that the professional judgment of the auditors is not enough and the supervision system is not effective.The most fundamental reason for Ruihua's violation is low violation cost and little punishment.Secondly,through a series of data on the impact of illegal Ruihua are analyzed.The share price of listed companies on average K analysis of illegal Ruihua shares of listed companies caused fluctuations,through the company's balance sheet and income statement analysis report Ruihua violation to conceal fraud of listed companies,misleading investors decision-making,Xi Ruihua through the enterprise IPO services in violation of Ruihua company three new board IPO process slowed down by the accounting firm Ruihua 100 information ranking analysis will lead to their own illegal ranking changes.Finally,combined with the analysis and comparison of four foreign and domestic firms in recent years,the business income and the amount of the fine,summed up the reasons of firm violations of the most fundamental is the low cost of illegal,punishment,and the solution is to increase penalties,increase the illegal cost,the accounting firm can not easily breach.Therefore,according to the Ministry of Finance issued in August 20,2017 of the new "accounting firm licensing and supervision and management measures" to put forward feasible suggestions to increase the punishment,forced regulators to improve the regulatory system,the accounting firm not illegal,promote the healthy and steady development of CPA industry.