Research On The Contagious Effects And Influencing Factors Of The Low Audit Quality Of Zhengzhong Zhujiang Certified Public Accountants

The “Kangdexin Incident” and “Kangmei Pharmaceutical Incident" in 2019 severely damaged investors' confidence in the capital market,reflecting the misalignment of intermediaries from the role of “gatekeeper”.The frequent occurrence of low audit quality has caused the public to question the professional ethics of the CPA industry,and at the same time,it has a great sense of distrust in the audit opinions issued by other listed companies.Based on the administrative punishment letter issued by the China Securities Regulatory Commission for audit violations,we found that the punishment was relatively concentrated.From 2016 to the first half of 2019,there were a total of 21 administrative penalties disclosed by the CSRC and the Exchange disclosed by the official website of 40 certified accounting firms with securities and futures,concentrated in 10 firms,including 5 each for Ruihua and Lixin.There are 3 items in Lianda,showing a certain time series.Ruihua and Lixin have three items in 2017 and 2018 respectively.This makes us wonder whether an audit failure case was caused by accident or a systematic defect in the firm? Does a low-quality audit business of an accounting firm indicate that the overall audit quality of the firm is low,and there are other low-quality audit phenomena,that is,whether the firm's low audit quality has horizontal and vertical contagion effects? What are the factors that affect the contagion effect of low audit quality?On this issue,this paper conducts analysis from the perspective of accounting firms,and adopts the method of combining normative research and case study,as well as qualitative analysis and quantitative analysis.Taking Zhengzhongzhujiang accounting firm as a case,it selects a total of 323 samples from all its clients in 2015-2018 to conduct research.This paper will study the supply side and the demand side of audit and the external environment,and put forward Suggestions based on this.The following conclusions are drawn through the analysis:(1)The selection of high-risk clients of the firm,the auditor's failure to form a quality-oriented behavior model and the firm's economic benefit orientation have an impact on the firm's low audit quality contagion effect from the perspective of audit quality supply.(2)As the audit demander,the listed company has a low quality audit preference due to the defects of internal governance mechanism.(3)External supervision is weak and the lack of reputation mechanism connives at the occurrence of low audit quality to some extent.