Research On The Consequences And Causes Of Repeated Punishment Of Ruihua Accounting Firm

Since 2007,in order to promote the development of China's audit market,China Institute of certified public accountants and relevant government departments have issued many policies to encourage firms to become bigger and stronger,but audit failures have occurred from time to time.Through sorting out and analyzing the 2016-2019 "administrative punishment of China Securities Regulatory Commission on securities qualified accounting firms and certified public accountants" issued by China Securities Regulatory Commission,In 2016-2019,the CSRC imposed 17 administrative penalties,involving 10 accounting firms and 38 certified public accountants.Ruihua certified public accountants Co.,Ltd.has received the letter of administrative penalty issued by CSRC since 2016.Ruihua certified public accountants Co.,Ltd.has been punished six times in 2016-2019,involving 11 certified public accountants.The frequent occurrence of audit failure causes Ruihua to suffer from continuous punishment,so it is necessary to explore the impact of administrative punishment on the firm,the reasons for the punishment of the firm and how to avoid the occurrence of punishment eventsThis paper analyzes six cases of audit failure of Ruihua certified public accountants from 2016 to 2019,using literature analysis,case analysis and induction,referring to relevant research of domestic and foreign scholars,using principal-agent theory,public product theory,accounting firm quality control theory and audit risk theory.In addition,this paper selects the data of listed companies audited by Ruihua certified public accountants from 2011 to 2018 for analysis,and analyzes the consequences of continuous punishment of Ruihua certified public accountants from four perspectives:business volume,audit revenue,audit quality and future development of the firm.This paper analyzes the reasons for the continuous punishment of Ruihua accounting firm from the perspectives of audit independence,professional competence,the quality of practice of the general branch office,audit risk awareness,the concentration of audit market,the lag of administrative punishment and the lack of severity of administrative punishment,and puts forward the following countermeasures and suggestions to prevent Ruihua accounting firm from being punished again and improve its audit quality Ruihua We should strengthen the construction of human resources,improve professional competence,strictly implement the audit procedures,and establish and improve the quality control system of the firmIt is found that the CSRC has certain effect on the administrative punishment of Ruihua,which improves the audit quality of Ruihua accounting firm.The continuous punishment of Ruihua accounting firm is mainly caused by the poor audit quality of Ruihua accounting firm The reasons for the poor audit quality include:problems in the quality control of Ruihua accounting firm,lack of independence of certified public accountants,lack of professional competence,uneven quality of practice in the general branch office,weak awareness of audit risk,over concentration of audit market,lagging administrative punishment,and poor performance The severity of political punishment is insufficient.In order to improve the ability of supervision and improve the way of supervision,this paper puts forward corresponding countermeasures and suggestions:the CSRC should increase the number of reviews,the form of punishment and the amount of punishment.