Research On The Status And Effect Of Administrative Supervision Of CPA Industry

As an important defender of the market economic order,the CPA(Certified Public Accountant)industry in China has developed rapidly since the reform and opening up to the outside world,and now it has played a decisive role in the maintenance of market economic order.At the same time,the importance of the CPA industry is becoming more and more important.On the other hand,we can see that the cases of accounting fraud at home and abroad continue to occur.Means and methods of accounting fraud have been upgrading,and the degree of fraud has been rising,which has had a very bad impact on the development of the whole industry.From the well-known cases of financial fraud such as Guangxia(Yinchuan)Industrial Co.,Ltd.and Lantian Corporation of China,to the cases of fraudulent listing such as Wanfu Shengke Co.,Ltd.and Yunnan Luda Biotechnology Co.,Ltd.,as well as the cases involving more and more amounts of money and personnel in Shanghai Dazhi Co.,Ltd.and Jiuhao Group in recent years.For the CPAs,it is more and more difficult for them to maintain their functions as "the Guardian God of information quality".Our country has been emphasizing to continuously promote and strengthen the supervision of the CPA profession for several years,but its concrete supervision effect and improvement effect on audit quality are unknown.This paper begins with the analysis of the background and development of the CPA industry in China,focusing on the main ways of administrative supervision adopted in our country,and analyzing the situation of government supervision and industry self-regulation,so as to study the overall effect of administrative supervision.On this basis,this paper chooses REANDA Certified Public Accountant's penalty cases for specific company research in the follow-up,mainly because it is the firms that have received the most penalties from the China Securities Regulatory Commission(CSRC).These penalties also have a longer time span,and because of this,we can better see the economic changes and audit quality changes after the administrative penalty.Such typical cases deserve our to have a deep consideration.At the same time,in recent years,REANDA Certified Public Accountants has been punished many times in a short period of time,and the effects of single punishment and multiple punishment are also quite different.Therefore,in the follow-up,this paper continues to choose REANDA Certified Public Accountants as a case study,and makes a detailed analysis of the effect of administrative penalties,and then finds out the impact of administrative supervision on the economic consequences and audit quality of accounting firms in our country.Finally,combined with the current overall supervision effect of the industry and the supervision effect of specific accounting firms,this paper will respectively put forward some improvement suggestions on the follow-up administrative supervision of China's CPA industry from the problems in industry supervision.