A Case Study Of Frequent Changes Of Accounting Firm Ir Tianshou Development

In recent years,the phenomenon of listed companies changing their accounting firms has become more and more common in China.In 2018 alone,298 listed companies changed their accounting firms,accounting for 11.34%of all listed companies that disclosed their annual reports.Since the 20th century,many financial frauds have been accompanied by the behavior of changing accounting firms.The regulatory authorities have also formulated relevant policies and regulations,and the academic community has also conducted a multi-angle analysis of the real reasons behind the changes.By studying the behavior of listed companies changing accounting firms,we can understand the financial situation of listed companies,explore the interest driving behind the changes,and help external investors to understand the real situation of the company and make correct investment decisions.In addition,by analyzing the economic consequences after the change,we can summarize our experience,understand the law,reflect on and improve the existing supervision and disclosure policies,and promote the healthy development of the audit market and capital market.The case company selected in this paper is Inner Mongolia Tianshou Technology Development Co.,Ltd.,a very typical representative company which has changed accounting firms for six times since its listing in 1996.This paper analyzes the six changes through sorting out the information of CSMAR database and querying the annual report data of Tianshou and finds out that the causes of each change are not the same,including purchasing audit opinions,transmitting positive signals and covering up the company's operating difficulties.And the main economic consequences after the changes are the poor financial situation,obvious market reaction,the improvement of audit costs,the decline of audit quality,etc.Finally,I get my conclusion and make my personal suggestions through the reflection of the causes and economic consequences revealed behind the accounting firm changes of the case company combined with the reality of our country.First,listed companies should improve their governance structure;second,investors should be alert to the listed companies that frequently change their accounting firms;third,regulatory authorities should improve the information disclosure reporting system;fourth,firms should improve the training and supervision mechanism of auditors;fifth,news media should play an external role in supervision.