The Relationship Of External Supervision And Accounting Information Quality

Accounting information is the carrier that reflects the company's financial status,capital changes,and operating results.It is also the basis for understanding the company's operating status.First of all,it can evaluate and predict the cash flow of enterprises,and help investors and creditors of enterprises to make investment decisions,and help operators strengthen enterprise management;secondly,it is conducive to the government's macro-control of the market;and finally,the governance of microeconomics Aspect and macroeconomic regulation and control have reference value.This shows that accounting information plays an important role in maintaining market stability and improving market operation efficiency,and its quality plays an important role in the healthy operation of the capital market.Once accounting information is distorted,investors' decision-making behavior will be misguided to lose their vested interests and cause investment decision-making to fail.It will also disrupt the market economic order and jeopardize public order.It will also distort the stock market's resource mobilization and allocation functions.Every year,the Securities Regulatory Commission,the Ministry of Finance and other departments punish companies and accounting firms suspected of violating accounting information disclosure,and restatement of financial reports is also very common.This shows that the current quality of corporate accounting information in China needs to be improved.In 2019,the quality of accounting information is still very serious,and even affects independent audit institutions,such as Ruihua Certified Public Accountants.Self-discipline has long been unable to fully guarantee the quality of information.At this time,external forces are particularly important.External supervision is used to protect accounting information.The last warning line of quality needs to fully play the role of accounting information verification and supervision.Therefore,this article studies how to improve the quality of accounting information from the standpoint of external supervision.The target case selected in this article is Guangxi Kanghua Agriculture.Due to the particularity of the industry,supervision is becoming more difficult.The issue of information quality of agricultural enterprises is discussed and suggestions are made to improve external supervision.First,summarize the relevant literature at home and abroad and the relevant theories of accounting information quality,and then evaluate the overall status of accounting information quality of listed companies in China,and use DEMATEL analysis to find out the key factors that have an important impact on information quality in external supervision.The six factors of punishment intensity,degree of government intervention,supervision capacity,independence of audit institutions,audit fees,and media attention have an important impact on information quality,and provide theoretical guidance for improving the quality of accounting information in target cases.Secondly,based on the case of Guangxi Kanghua Agricultural Company 's external supervision failures that led to the distortion of accounting information,it analyzes the related issues such as lack of reliability of accounting information,insufficient disclosure of accounting information,and untimeliness.From the perspective of analyzing the distorted cases of Kanghua's agricultural accounting information,it discovered external supervision problems and made targeted suggestions for improving the quality of accounting information.Finally,the research results of this paper are summarized,indicating that the research is insufficient and looking forward to the future research direction.