Study On Frequent Auditors' Change Of Ingenious Ene-Carbon New Materials Group Co.,Ltd.

It is common for listed companies to change auditors in the capital market."Notice on Relevant Issues Concerning the Employment and Replacement of Public Accounting Firms(Audit Firms)by Listed Companies" issued by the SFC on July 29,1996 states: "The decision of the company to dismiss or not to renew the Public Accounting Firms(Audit Firms)shall be made by the shareholders' meeting,disclosed in the relevant newspapers and periodicals,and,if necessary,explained the reasons for the replacement,and reported to the CSRC and the CPC.Accountants Association for the record.This regulation aims to alert users of financial statements to the risks that may exist in Listed Companies in the event of auditor changes.In the face of regulatory requirements,most listed companies disclose auditor changes in time in relevant newspapers and magazines.However,many companies show a "perfunctory" attitude in terms of the specific reasons for auditor changes and other substantive content.This phenomenon can not help but arouse the concern of investors and regulators.Do listed companies use auditor changes to cover up opportunistic behavior? Are the auditors prudent enough to provide audit services after the change? Is career suspicion properly applied? Will it provide higher audit quality? For companies that frequently change auditors,concerns about these issues are even more prominent.Out of interest in the above issues,this paper chooses three consecutive auditor changes of Ingenious Group as the research object to analyze the reasons for frequent auditor changes and whether successor auditors have maintained a high degree of prudence and independence.In the analysis of the basic financial ability of silver alkenes,by comparing with other companies in the same industry,we find that silver alkenes have signs and motivations to whitewash performance in auditor change events;in the study of the consequences of auditor change,we find that the level of manipulative income and manipulative accrued profit that successor auditors can tolerate is declining,which indicates that the degree of caution of successor auditors is somewhat.In addition,this paper also finds that the severity of audit opinions issued by successor auditors has been improved,and successor accounting firms have allocated more experienced auditors for Ingenious Group.The significance of this study is to analyze in depth the special information transmitted by frequent auditor changes in capital market in the form of case studies,revealing that listed companies may use auditor changes to cover up opportunistic behavior.As far as accounting firms are concerned,it is necessary to avoid developing customers with frequent changes of auditors in business acceptance,which helps to eliminate audit risks at the source of audit work.For regulators,we should further strengthen the overall supervision of listed companies with auditor changes,especially frequent changes.