The Study On The Alienation Of Audit Demand And Audit Discipline Based On The Punishment Of Ruihua

The audit information in real life presents the nature of public goods.This means that users of audit information often do not need to pay.Such characteristics make the audit supply and demand generally and long-term contradictory.Therefore,the effective audit needs are insufficient.The situation inevitably exists in the audit market.The lack of effective auditing requirements means that the demand side does not care about the attitude of audit quality,and even pursues low-quality auditing,which also leads to low-quality auditing services.The existence of low-quality auditing makes the emergence of audit disciplinary action inevitable.The characteristic requirements of the audit market must be managed and standardized through certain mandatory measures.Whether it is fraud fraud of the company,or lack of self-ability and independence of the firm and the certified public accountant,or there is a problem in the overall audit supervision,these eventually led to the occurrence of audit disciplinary cases.Audit disciplinary action actually exists to improve the quality of audits and improve the effective requirements of auditing.Therefore,research and discussion of this kind of relationship can more clearly recognize the inevitability of low-quality auditing for the occurrence of audit disciplinary actions.It is possible to understand whether there are flaws in the audit disciplinary measures and thus constantly improve the audit disciplinary system.This article starts with Ruihua Certified Public Accountants,which has been punished by many supervisors for a number of times.It sorts out a series of incidents,and analyzes the common factors that have occurred in many incidents.It also analyzes the reasons for punishment,the reporting items involved in the penalties,and their impact.The status of the enterprise involved in the penalties,the reasons for non-compliance,the deferral time,and the type of punishment.First of all,from the above factors,we analyzed the influencing factors of Ruihua's audit disciplinary action.It can be found that there are many companies in Ruihua's services that have a demand for low-quality auditing services;Ruihua is due to either active or passive reasons.There is a situation that meets the demand for low-quality auditing;and there are often delays in the time when Ruihua is punished and the relative lack of penalties is one of the factors in which Ruihua has repeatedly experienced low-quality auditing services.Secondly,from another point of view,what kind of result did the Ruihua punishment incident ultimately cause? On the one hand,Ruihua did lose a considerable number of customers and also made corresponding rectifications.However,in fact,its revenue and rankings have not been affected,but on the contrary,they have risen.On the other hand,companies are facing Ruihua.In the case of being punished,there was indeed a phenomenon of replacement of the firm,but the number of service companies announced by Ruihua has actually increased.All this shows that audit disciplinary action does have a certain impact on Ruihua,but it also has certain limitations.In the following,the article also extended the discussion of the conclusions found in Ruihua's case.On the one hand,it demonstrated that Ruihua's punishment was universally representative.On the other hand,it also supplemented the problems that did not appear in the Ruihua case.Through further analysis,it isconcluded that auditing demand divergence does indeed lead to audit disciplinary action.However,from another direction,audit disciplinary action has a certain role in reducing the alienation audit requirement but also has certain defects.The probability of China's audit disciplinary action is extremely high.Low,administrative penalties are insufficient,and there are certain flaws in the evaluation of the firm's rankings so that the follow-up impact of punishment is insufficient.In response to these problems,this article puts forward some relevant recommendations from the regulatory side and the firm itself,in order to provide reference for the improvement of audit disciplinary measures,make it more effective,and make our audit market more perfect.