The Analysis Of Accounting Firm Frequent Change In China Security Co.,Ltd

With the separation of ownership and management,accounting firms,as a independent special institution,have a more prominent role in supervising listed companies to provide authentic financial reports.Accounting firms obtain audit fees by issuing fair and objective audit opinions when providing audit services.Listed companies have a duty to provide fair financial statements,but with the existence of asymmetric information and self-interests,the management may provide false financial statements,and requires auditors to cooperate,if an accounting auditor,which considered the risks to refuse the requirements of the listed company,it may be dismissal by listed companies,it is what we say accounting firm change.It is of great significance to study the change of accounting firms.At present,the change of accounting firms of listed companies in China at a high level.By studying the background and financial situation of the change of accounting firms of listed companies,we can have a deeper understanding of the capitalist market and reduce information asymmetry.At the same time,the further understanding and analysis of the real reasons for the change and the consequences of the accounting firm change in listed company,we can learn the experience,which is conducive to investors to make the right decision.This article selects the China Security Co.,Ltd as a case study.The corporation has a three times of accounting firm change since 2013,the introduction of the promises performance,the M&A and the financial situation after backdoor listing can help us know more about the corporation.Then the further specific introduction help us to further analysis.Through further analysis,this paper found that China Security Co.,Ltd's upward change of accounting firm could not achieve the purchase of audit opinions,but the company could achieve the purchase of audit opinions by downward change of accounting firm,so as to avoid the risk of the stock being suspended from the market due to the issue of non-unqualified opinions for two years.At the same time,this paper found that companies in the disclosure of time exists selective replacement of certified public announcement,for example,in the company confronted with bad news,it choose to accounting firm's upward change to deliver good news to alleviate the negative effects of bad news,companies choose the material assets reorganization announcement before disclosure the changes of accounting firm to avoid the market reaction and so on.The company accounting firm's upward change can pass good news to a certain extent really,but duration is short.Accordingly,this paper puts forward relevant suggestions to investors,accounting firms and regulators.It includes that investors should pay more attention to the replacement of accounting firms,focus on the revenue and some other problems.At the same time,the accounting auditor should prevent the risk of changing the accounting auditor,communicate with the former accounting auditor in time,and prudently undertake the business of frequently changing the accounting auditor;Finally,the regulatory level should further strengthen the supervision of the change of accounting firms.There are five parts in this paper.The first part is the introduction,which consist of the background,significance,thoughts,literature review and so on.The second part is the research basis of this paper,which puts forward the concept type,procedure,relevant regulations and theoretical basis of the replacement of accounting firms.The third part is the introduction of the case company,including China Security Co.,Ltd 's business scope,financial situation and a preliminary understanding of the three changes of accounting firms.The fourth part makes an in-depth analysis of the real reasons behind the company's three changes of accounting firms and the resulting economic consequences.The fifth part puts forward the corresponding Suggestions according to the relevant research conclusions.